When we calculate the NPV of a project, there is always an initial investment and then cash flow in and out in the later years,
Suppose i want to invest 1000 to buy a company, then 1000 is my initial investment but then what is my cashflow in and out in the later years??? is that the FCFF , FCFE, dividend or what ??? which one should i use as cashflow when calculate the NPV of this investment
initial investment 1000 year 1 2 3 FCFF 200 300 400 FCFE 150 200 250 Dividend 100 150 200