3. You plan to measure the value of a business by calculating the sum of the present values of its future free cash flows to the firm (FCFF). Based on discounted FCF model, which of the following would lower the calculated value of the business? a. The weighted average cost of capital increases. b. The firm expected future free cash flows keep on increasing while the assets in place remains the same.

c. The total amount of free cash flows remains the same, but more of the free cash flows are received in the earlier years and less are received in the later years.

d. The firm expects to have longer period of high growth.