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Name Instructor Course Date Certainty Equivalent Method Cash flow estimates get derived for an individual project cash flow through estimation of the firm's current earnings where the earnings after interest expenses consideration take place if using the income statement but if using the cash flow then look at operating income budget decision thus firm in the same line of business can utilize same estimates CITATION Web10 \l 1033 (Web Extension). Work Cited BIBLIOGRAPHY \l 1033 "RISK ADJUSTED VALUE." n.d. people.stern.nyu.edu/. 27 March 2017. <people.stern.nyu.edu Web Extension. "Certainty Equivalents and Risk-Adjusted Discount Rates." 2010. www.cengage.com. Cengage Learning. 27 March 2017. <http://www.cengage.com/resource_uploads/downloads/0324594690_163044.pdf>. [...]
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Please answer these questions. This is a discussion post for an online class. can be done in essay form or individually. minimum 2 references, please no investopedia. How are cash flow estimates derived for individual project cash flows? Will all individuals and businesses apply the same certainty equivalent estimates to govern cash flows from given projects? Why or why not? In your explanation you could include a glimpse into risk-adjusted discount rate as described in the same chapter.
Subject Area: Finance
Document Type: Research Paper
