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FREE CASH FLOW VALUATION - Exam Success
Defi ning Free Cash Flow Free cash fl ow to the fi rm is the cash fl ow available to the company ’ s suppliers of capital after all operating expenses (including taxes) have been paid and necessary investments in working capital (e.g., inventory) and fi xed capital (e.g., equipment) have been made. FCFF is the cash fl ow from operations ...
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CAPITAL BUDGETING - Exam Success
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edu.nacva.com1. To remove non-operating assets, for example: excess cash and cash surrender value of life insurance. 2. To convert LIFO inventory to FIFO inventory. 3. To estimate NPV of the deferred income tax liability associated with the built-in gain on LIFO reserve and PP&E based on a seven-year liquidation horizon discounted to NPV using a 5%