The cash flow of the firm is defined as the cash flow of the assets. This cash flow must be equal to: cash flow to equity plus cash flow to debtholders. cash flow to equity minus cash flow to debtholders. cash flow to debtholders minus cash flow to equity. cash flow from changes in working capital plus cash flow to equity. The two fatal flaws of the internal rate of return rule are: failure to correctly analyze mutually exclusive investment projects and the multiple rate of return problem. arbitrary determination of a discount rate and failure to correctly analyze mutually exclusive investment projects. arbitrary determination of a discount rate and the multiple rate of return problem. failure to consider initial expenditures and failure to correctly analyze mutually exclusive investment projects