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    Essentials of Entrepreneurship Study Set 2
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    Exam 7: Buying an Existing Business
  5. Question
    The Reliability of the Discounted Future Earnings Approach to Valuing
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The Reliability of the Discounted Future Earnings Approach to Valuing

Question 130

Question 130

True/False

The reliability of the discounted future earnings approach to valuing a business depends on making accurate forecasts of future earnings and on choosing a realistic present value rate.

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