What is Free Cash Flow to the Firm (FCFF) primarily used for?

Estimating cash flow available to the firm's finance org.
Estimating cash flow available to shareholders only.
Estimating cash flow available to invest in firm-specific projects.
Estimating cash flow available to creditors and shareholders.

Estimating cash flow available to creditors and shareholders.

Explanation: Free cash flow to the firm (FCFF) is the cash available to shareholders and bondholders (creditors to the bond issuer) after depreciation expenses, taxes, working capital, and investments are accounted for and paid. It is a measurement of a company's profitability after all expenses and reinvestments and thus is useful in comparing and analyzing a company's financial health. Positive free cash flow to firm value indicates that the company has cash remaining after expenses while a negative value indicates that the firm has not generated enough revenue to cover its costs and investment activities.

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