Forensic Accounting

Category - Specialized Forensic Knowledge

What discounting method is used in ex post analysis?
  1. Present value cash flow
  2. Dated cash flow
  3. Discounting is not required
  4. All of the above
Explanation
Answer: A - For ex post analysis, cash flow must be discounted at present values to make it at par with the current rates. For ex ante purposes, dated cash flow method is preferred.
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