Question: In the note Using APV: A Better Tool for Valuing Operations, it is shown that APV is superior to the WACC method in the following
In the note "Using APV: A Better Tool for Valuing Operations", it is shown that APV is superior to the WACC method in the following EXCEPT APV can help managers analyze where the value comes from The WACC requires only one discounting operation, a boon in the past to users of calculators and slide rules APV requires fewer restrictive assumptions The WACC method produces much higher overestimate numbers
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