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      "text": "254. Let's say we shift the discount rate in our DCF analysis from End-of-Year Convention to Mid-Year Convention. How would this impact the Intrinsic Value per Share?\n\n\"It will increase our Intrinsic Value per Share because the discount period is lower, so each future dollar is discounted less.\"",
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      "text": "255. I'm going to give you two options. Option 1: I give you $1 at the end of every day guaranteed for life. Option 2: I give you a lump-sum payment of $1,000 today. Which one would you choose and why?\n\n\"Assuming Option 1 is truly guaranteed without any risks, I'll take Option 1. I know the Risk-Free Rate is around 3.6% (as of January 2023). There's 365 days which means I'll earn $365 every year. Using this discount rate, the present value of just the next 3 years from Option 1 alone is more than $1,000. I'm only [19] years old, so the value of Option 1 is far greater than that of Option 2.\"",
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      "text": "256. In our DCF, we projected $100 of Accounts Receivables balance every year for 5-years. Then management tells us that Accounts Receivable balance will drop to $60 in Year 3 and then come back up to $100 in Year 4. In other words, Accounts Receivable balance will be $100 in Years 1, 2, 4, 5 and $60 in Year 3. Will this change from management increase or decrease the Intrinsic Enterprise Value in the DCF?\n\n\"It increases the Intrinsic Enterprise Value. In Year 3, Changes in Working Capital will increase cash flow by $40. In Year 4, Changes in Working Capital will decrease cash flow by $40. However, due to discounting, the increase in Year 3 is worth more than the decrease in Year 4. Therefore, it will increase the Intrinsic Enterprise Value.\"",
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      "text": "The Core Technicals Guide | www.10XEBITDA.com",
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      "text": "IV. Discounted Cash Flow (DCF) E. Intrinsic Value",
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