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You have valued a retail business using the discounted cash flow model on 12/31/2019 (prior to the pandemic caused by the corona virus). Your boss
You have valued a retail business using the discounted cash flow model on 12/31/2019 (prior to the pandemic caused by the corona virus). Your boss wants you adjust the model given the pandemic. How would you recommend adjusting the model? Would you lower the forecasted incremental cash flows? Would you increase the discount rate? Both?
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