When the underlying riskiness of free cash flow (FCF) decreases,

the project's value:

Group of answer choices

increases

has no effect

decreases

What is TRUE about Free Cash Flow (FCF)?

Group of answer choices

FCF decreases when additional investments are needed in working capital.

Changes in the fixed assets are not included in the FCF estimates

Accelerated depreciation method reduces FCF

FCF is estimated on a before tax basis

FCF should be measured

Group of answer choices

in real terms, i.e., discounted by the inflation rate

in nominal terms i.e., include expected inflation rates

nominal or real values--it will make no difference

for only 10 years

Which cash flows are relevant in Discounted Cash Flow (DCF) method of valuation?

Group of answer choices

cash flows before taxes

cash flows of the target firm as a stand-alone

cash flows based on the synergy effects of acquisition

net profit after taxes