For what reason does the discounted cash flow model introduced in this class include a discreet depreciation schedule tied to beginning net PP&E and forecasted capital expenditures?

Group of answer choices

Because if forecasted capex is too low relative to forecasted depreciation expense, the implied ROIC in the model will be too high and we will tend to overestimate intrinsic value

Because if projected capex is too high relative to projected depreciation expense, the ROIC implied in our model will be artificially low and we will tend to underestimate intrinsic value

To make sure forecasted depreciation expense is equal to total capital spending over time

All three of these other answers are correct