Question: When calculating a projects free cash flow in year 4 as $350, you mistakenly assumed the firm would have depreciation in year 4 of $100.

When calculating a project’s free cash flow in year 4 as $350, you mistakenly assumed the firm would have depreciation in year 4 of $100. Will lowering the depreciation to the correct value of $10 raise or lower your estimate of the project’s free cash flow in year 4?

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