Which of these is the process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements?
a) ​Pro forma analysis ​
b) Substitutionary analysis ​
c) Incremental cash flows ​d) Cash flow analysis

Respuesta :

The process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements is Pro forma analysis. The correct answer was A.

Which of these best reflects how to determine a project's projected future cash flows?

A valuation technique known as "discounted cash flow" (DCF) determines an investment's value based on its projected future cash flows. DCF analysis aims to assess the value of an investment today by using projections of how much money an investment will generate in the future.

We anticipate cash flows because of the procedure offers a structure for developing and carrying out the greatest investing ideas. Cash flow predictions are used to determine the viability of long-term investments economically. The cash Project flows are estimated using discounted and non-discounted cash flow approaches.

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