Question: When using a DCF method with free cash flows to the firm to value a firm, what measure should we use for the discount rate?

  1. When using a DCF method with free cash flows to the firm to value a firm, what measure should we use for the discount rate?
  2. what does decreasing the risk free rate reduce?
  3. if someone forgot to account for changes in ne worrking capital, how would the npv change after accounting for the forgotten changes if the project lasts seven years and net working capital requires a one time increase of $17000 and firm has 12% cost of capital?
  4. if a firm considers project with IRR of 8% and firms costs of debt is 6%. market value and proportion of equity is 0.5 do you accept or reject project?

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