Which of the following should be considered in the estimation of free cash flows?
A) Cash generated from the sale of a project
B) Recovery of net working capital
C) Operating cash flow
D) All of the above

Question

Quizplus · Accepted Answer

All of the above factors should be considered in the estimation of free cash flows. Cash generated from the sale of a project represents a one-time cash inflow that can impact the free cash flow calculation. Recovery of net working capital represents cash that was tied up in the business operations and can now be converted back into cash, which should be included in the estimation of free cash flows. Operating cash flow is the cash generated by the company's core operations and is a key factor in the estimation of free cash flows.

Which of the Following Should Be Considered in the Estimation