when using discounted cash flow analysis for valuation, an appraiser will prepare a cash flow forecast, often referred to as a pro forma.
The term pro forma is most usually used to explain a practice or report that is provided as a courtesy or satisfies minimal requirements, conforms to a norm or doctrine, tends to be finished perfunctorily or is considered a formality. The term is utilized in criminal and enterprise fields to consult various varieties of files that might be generated as a count of the route. Pro forma accounting is a declaration of the company's financial activities whilst with the exception of "uncommon and nonrecurring transactions" whilst declaring how much money the business enterprise clearly made. Examples of prices frequently excluded from pro forma effects are employer restructuring charges, a decline in the fee of the enterprise's investments, or other accounting expenses, including adjusting the modern balance sheet to restore defective accounting practices in previous years.
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