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Assess how the free cash-flow method can be used when a company is profitable yet the cash-flow values are expected to be negative over the next five years, indicating the likely impact on the valuation.

“Negative Cash Flow” Please respond to the following:

  • Assess how the free cash-flow method can be used when a company is profitable yet the cash-flow values are expected to be negative over the next five years, indicating the likely impact on the valuation. Provide support for your rationale.
  • Assess which cash-flow variables are the most sensitive to change and the likely impact on a firm’s valuation. Provide support for your answer.

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