Question
Discuss why the free cash flow (FCF) excludes interest payments. Why are changes in net operating working capital (NOWC) subtracted from the operating cash flow
Discuss why the free cash flow (FCF) excludes interest payments. Why are changes in net operating working capital (NOWC) subtracted from the operating cash flow (OCF) in deriving the FCF? Also, explain why the terminal value of a project must be taken into account when estimating the FCF.
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
