Question: Why do we not subtract interest when calculating the annual operating cash flows when we are estimating cash flows because: Because interest is expensive, a

Why do we not subtract interest when calculating the annual operating cash flows when we are estimating cash flows because:

Because interest is expensive, a company is better off issuing stock.

Double counting, since interest is already included in the WACC.

Because we assume that the company takes on no interest when undergoing a project.

Because interest is irrelevant to this calculation.

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