True or False.13. Both the discounted cash flow (DCF) model and the economic profit (EP) model involve the estimation of future profits and cash flows.14. Charges for depreciation must not be added back to profits in calculating free cash flows (FCF).15. Growth is only a successful driver of increased business value if return on invested capital (ROIC) exceeds the weighted average cost of capital (WACC).16. As industries become increasingly competitive, economic profit, as defined by Alfred Marshall, tends to decrease in size.
True or False.13. Both the discounted cash flow (DCF) model and the economic profit (EP) model involve the estimation of future profits and cash flows. False 14. Charges for depreciation must not…
