Determining Discount Rate for Companies with Negative Initial Cash Flows and Future Growth
Wizenius
JUNE 25, 2023
Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years. Adjust the risk-free rate, such as the yield on government bonds, to account for the risk associated with the company's cash flow projections and future performance.
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