(Conceptual Question) Answer the following questions: a. Estimating firm's FCF and Cash Flow Statement is important. i. The increases in cash & equivalents along with marketable securities is not equal to retained earnings. In addition, after-tax CFs generated by a firm for its investors from its underlying business activities (FCFs) are not equal to NOPAT, the income generated by the firm for all its investors. Explain the underlying accounting principles that lead to this conclusion. ii. What is net operating working capital? Why does it exclude most short-term investments and notes payable? What is total net operating capital? Why is it important for managers to calculate a company's capital requirements? b. Mutually exclusive projects can be evaluated using various measures (metrics), three of which are NPV, IRR, and Payback period. i. Describe what each metric is calculating using the simplest possible words. ii. Why is NPV the primary capital budgeting decision metric for mutually exclusive projects? Explain. iii. In which situations do the other metrics (IRR and Payback) fail to maximize stockholder wealth if projects are mutually exclusive? Explain why