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The FCF in the last, or terminal, year of a projects life often includes cash flows that are not typically included in the calculations for
The FCF in the last, or terminal, year of a projects life often includes cash flows that are not typically included in the calculations for other years. (CSLO 5)
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The proper time to harvest an asset is when the percentage NPV increase of harvesting a project at a future point in time is at the first date where the increase is greater than the cost of capital. (CSLO 5)
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