1. Free cash flow and financial statements The primary objective of the corporate management team is to maximize shareholder wealth. The company's board of directors and the shareholders evaluate and review managerial actions based on the growth in the value of the firm. Based on your understanding of what determines a firm's value, review the following: Which of the options is most accurate? Option A Option B When determining the value of a firm, which of the following statements is true? The timing of cash flows a firm can generate is irrelevant in determining the value of a firm. The timing of cash flows a firm can generate is very important in determining the value of a firm. All else being equal, cash received sooner is better. The timing of cash flows a firm can generate is very important in determining the value of a firm. All else being equal, cash received later is better