What conditions does equation give satisfactory predictions

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Reference no: EM131376069

The following equation can, under certain assumptions, be used to forecast financial requirements:

AFN = (A*/S₀)(ΔS) - (L*/S₀)(ΔS) - MS₁(RR)

Under what conditions does the equation give satisfactory predictions, and when should it not be used?

Reference no: EM131376069

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