1. Link the definitions of NOPAT and FCF. Invoking extreme simplicity, how would you describe NOPAT to a colleague? How would you map FCF with respect to NOPAT, net fixed asset investment, and net working capital?
2. What purpose does determining a PV or a FV or a PVA or a FVA serve? In essence, what am I trying to accomplish by discounting everything back to a PV or PVA? What am I trying to accomplish by compounding everything forward to a FV or FVA? Give an example of how you may someday use these concepts to make a decision.