Firm statement of cash flows-operating and free cash flow

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Reference no: EM131994005

1. What is the difference between the firm’s statement of cash flows, operating cash flow and free cash flow? Which one is the most important? Tell us why.

2. Suppose that you can buy a car now for $21 000. On the other hand, you can lease it at $360 per month for 60 months. If you buy a car now, then you will be able to sell it at the end of the fifth year for $9 000. If you choose to lease, what is the monthly and annual IRR of the lease compared to the buying a car now?

Reference no: EM131994005

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