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Calculate a Firm's Free Cash Flow If It Has Net

Question 65

Multiple Choice

Calculate a firm's free cash flow if it has net operating profit after taxes of $60,000, depreciation expense of $10,000, net fixed asset investment requirement of $40,000, a net current asset requirement of $30,000 and a tax rate of 30%.


A) $0.
B) $30,000.
C) -$30,000.
D) none of the above.

Correct Answer:

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