medium · Investment Banking
In a DCF analysis using the mid-year convention, how would the Present Value (PV) of Year 1 Unlevered Free Cash Flow (UFCF) compare to a standard end-of-year discount model?
- The mid-year PV will be higher
- The PV will be higher only if WACC is negative
- The PV will be identical in both models
- The mid-year PV will be lower
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