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    Principles of Managerial Finance
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    Exam 18: Mergers, Lbos, Divestitures, and Business Failure
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    The Basic Difficulty in Applying the Capital Budgeting Approach to an Acquisition
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The Basic Difficulty in Applying the Capital Budgeting Approach to an Acquisition

Question 118

Question 118

True/False

The basic difficulty in applying the capital budgeting approach to an acquisition of a going concern is the estimation of initial cash flows and certain risk consideration.

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