Which of the Following Descriptions of the Free Cash Flow

Multiple Choice

Which of the following descriptions of the free cash flow to the firm (FCFF) model is inaccurate?

A) FCFF analysis focuses on the amount by which shareholder value is created during a period.
B) FCFF is positive when NOPAT is higher than the decrease in NOA during the period.
C) With the FCFF valuation model, firm value is the sum of the present value of horizon and terminal period free cash flows.
D) Managers can increase FCFF by decreasing fixed-asset acquisitions.
E) None of the above