How can FCF in the terminal year of a projects life differ from FCF in
QUESTION
How can FCF in the terminal year of a projects life differ from FCF in the other years?
to meet such cost and the free cash flow for the terminal year goes below the normal free cash flow as derived in other years. Thus the biggest reason for difference in free cash flow in terminal year of project and other years is the salvage value of the project.
ANSWER:
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