Question: In class we talked about how calculating the NPV for a project requires us to forecast the expected changes in FCFs each year across time
In class we talked about how calculating the NPV for a project requires us to forecast the expected changes in FCFs each year across time for that project. We used the following equation to identify which of the project cash flows affect FCFs
FCFtEBITttDepreciationtNWCtCapExt
If a project is expected to lead to higher sales in coming year thenpick all the statements that apply
Group of answer choices
FCFs will likely increase because EBIT will likely increase
FCFs will likely decrease because EBIT will likely decrease
FCFs will likely not change because none of the terms in this equation are likely to change
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