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Your boss tells you that residual operating income valuation model is less reliable because they use NOPAT as an input, and NOPAT is subject to

Your boss tells you that residual operating income valuation model is less reliable because they use NOPAT as an input, and NOPAT is subject to earnings management. Therefore, the output of residual operating income model is less reliable than the output of DCF models. Explain, in simple terms, why his statement is inaccurate.

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