The cash flow-based valuation approach to determine the value of a business identifies the amount of cash on hand and values that cash based on the average US currency exchange rate over the previous 12 months.

Question

Quizplus · Accepted Answer

The cash flow-based valuation approach involves projecting future cash flows and discounting them back to their present value, not simply valuing the current cash on hand based on currency exchange rates.

The Cash Flow-Based Valuation Approach to Determine the Value of a Business