Estimating the relevant cash flows of company

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A company is considering a new project. The CFO plans to calculate the project's NPV by estimating the relevant cash flows for each year of the project's life (i.e., the initial investment cost, the annual operating cash flows, and the terminal cash flow), then discounting those cash flows at the company's overall WACC. Which one of the following factors should the CFO be sure to include in the cash flows when estimating the relevant cash flows?

Reference no: EM132620387

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