It is incontrovertible that business and financial transactions are undertaken for profit-oriented objectives. For instance, assets will be purchased for the cash flows they will ultimately generate; not to decorate the portfolio of the purchaser. Therefore, knowing what an asset is worth and what determines that value is a prerequisite for intelligent decision making i.e. in choosing assets to comprise a portfolio, deciding the appropriate price to pay or receive for an asset, and in making investment and financing choices when running a business
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