Question For Someone Smart: Do You Use a Discount Rate When Calculating BOFA?

I know that you generally can use your levered or unlevered cash flow when calculating your BOFAand obviously it's pretty impossible to do the rest of a DCF or CAPM without having your BofA calculated so I'm just wondering if you use your standard WACC to discount BOFA.

SB to anyone that can help, I really need to figure out this BOFA.

 

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Best Response

Someone please answer this. I got nailed with a BofA calculation during my second-round interviews at a top tier frat on campus (think PKA, Theta Chi). Didn't get the return offer, but hopefully I'll be able to figure it out before spring recruiting starts. Unfortunately, the humiliation has essentially blacklisted me from all the big frats so I'm probably going to be stuck looking for a spot in an off campus house. :(

 

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