State whether the following statements are true or false with reasons: Under discounted cash flow model of asset valuation, estimated cash flows during life of the asset are not required.

False. Under the Discounted Cash Flow (DCF) model of asset valuation, the present value of an asset is arrived at by determining the present values of all expected future cash flows generated from the use of the asset. Therefore, estimated cash flows during the life of the asset are absolutely required and are the core input for this valuation method.