Page 217 - CFF

Assumptions, limiting conditions, and

hypothetical conditions

• Assumptions and limiting conditions are the

parameters and boundaries under which a

valuation is performed.

• These may affect the scope of the work and

analysis and should be described in the

project’s engagement letter and written

report.

• Hypothetical conditions are assumptions

made for the purpose of a valuation analysis

that may be contrary to actual conditions.

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