Question: Use the data developed in the table to construct the L division's free cash flows for 2005 through 2008. Why are we identifying interest expense

Use the data developed in the table to construct the L division's free cash flows for 2005 through 2008. Why are we identifying interest expense separately since it is not normally included in calculating free cash flow or in a capital budgeting cash flow analysis? Why are net retentions deducted in calculating free cash flow?

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The easiest approach here is to calculate the free cash flows for the L division assuming that the acquisition is made in millions of dollars Note that these free cash flows are identical to what you ... View full answer

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