To make good decisions, a manager must be able to estimate the impact that possible strategies, tactics, and projects have on a companys value. In other words, a manager needs a tool that clearly shows the connections between managerial choices and firm value. This is exactly what the free cash flow (FCF) valuation model can do. The FCF valuation model defines the value of a companys operations as the present value of its expected free cash flows when discounted at the weighted average cost of capital (WACC). Managerial choices that change operating profitability, asset utilization, or growth also change FCF and, hence, the value of operations. Managerial choices that affect risk, such as implementing riskier strategies or changing the amount of debt financing, also affect the weighted average cost of capital, which affects the companys value. Therefore, the FCF valuation model is an important tool for managers. PLEASE ELABORATE?