Enterprise discounted cash flow (DCF) and economic profit models differ with respect to the discount rate...

Enterprise discounted cash flow (DCF) and economic profit models differ with respect to the discount rate used to estimate the future income streams.

a. true

b. false

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Expert Solution

False

An advantage of the economic profit model over the DCF model is that economic profit is a useful measure for understanding a company's performance in any a single year, whereas free cash flow is not.

jeff jeffy answered 2 years ago

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