Question

How do you find projected total CF CFFA?

A. Calculate the projected operating cash flow by subtracting the cost of goods sold, operating expenses, and depreciation and amortization from revenue.
B. Calculate the projected free cash flow to the firm by subtracting capital expenditures from the projected operating cash flow.
C. Calculate the projected total cash flow by adding depreciation and amortization to the projected operating cash flow.
D. All of the above.

Answer 1

To find projected total CF CFFA (Cash Flow Cash Flow to Firm), you need to calculate the projected operating cash flow, calculate the projected free cash flow to the firm, and calculate the projected total cash flow.

Step-by-step explanation:

To find projected total CF CFFA (Cash Flow Cash Flow to Firm), you need to follow these steps:

1. Calculate the projected operating cash flow by subtracting the cost of goods sold, operating expenses, and depreciation and amortization from revenue.
2. Calculate the projected free cash flow to the firm by subtracting capital expenditures from the projected operating cash flow.
3. Calculate the projected total cash flow by adding depreciation and amortization to the projected operating cash flow.

So, the answer is option D: All of the above.