At the end of 2008, you forecast the following cash flows for a firm for 2009-2012 (in

Question:

At the end of 2008, you forecast the following cash flows for a firm for 2009-2012 (in millions of dollars):

What difficulties would you have in valuing this firm based on the forecasted cash flows? What would explain the decreasing free cash flow over the fouryears?

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...