Hi, please help me with this exercise. If you may please do comments or an explanaition of why you choose that option, is better.

Thank you very much.!!

For the following berths choose the correct option according to the statement of each literal.

(F) Regarding Free Cash Flow, it is correct to state that:

(I) It is an approximation to the cash flows generated and required by a company / project. For this reason, it is imperative that it incorporates debt-for-interest and capital-repayment payments.

(II) It is an approximation to the true usefulness of the project. The idea of this is to start from the box that generates a company / project and correct it to reflect the accounting utility of the business.

(III) It is an approximation to the cash flows generated and required by a company / project. However, it only seeks to estimate the operational cash flows of the business, which is why the debt and equity movements are not included in its estimate.

(IV) The free cash flow will be equal to the profit as long as there are no expenses such as depreciation and amortization.

(E) From the following movements in the accounts, what represents an increase in free cash flow?

(I) An increase in accounts receivable, a decrease in accounts payable and an increase in the Company's fixed operating assets.

(II) An increase in inventories, an increase in accounts receivable, a decrease in accounts payable and a decrease in the company's fixed assets.

(III) A decrease in the company's long-term debt and therefore a decrease in the payment of interest on long-term debt.

(IV) A decrease in inventories, an increase in accounts payable and a decrease in the company's fixed assets.

Thank you very much!!