What are the key elements to keep in mind when determining the free cash flows for investment analysis?

1. What are the key elements to keep in mind when determining the free cash flows for investment analysis? Calculate the free cash flows for the project.
2. Calculate the WACC for Diamond Energy Resources. Clearly show how you calculated the inputs.
3. How do you determine if an investment is creating value?
· Calculate the appropriate capital budgeting evaluation measures for this project. (NPV, IRR, PI, and Payback)
· Discuss what each measure tells you about the investment.
· Discuss what each measure recommends: to accept or reject the project?
4. After considering all of the benefits and risks of the investment, do you think Diamond Energy Resources should invest in this project? Why or why not?

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Rating:
5/
Solution: What are the key elements to keep in mind when determining the free cash flows for investment analysis?