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Definition: Invested Capital Net Cash Flows
The cash flows from a firm which are available for payout to all its investors i.e equity holders (stockholders) as well as debt holders (lenders) after carrying out the necessary firm activities is called invested capital net cash flows. It is also known as Free Cash flows to the firm. This cash flow helps in valuing the entire business for M&A purposes and does not take into account the capital structure of the firm.