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

question 22

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) £30,000
• B) £0
• C) £(30,000)
• D) none of the above.

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Definitions:

Programmed Operating Parameters

Pre-set conditions and values within a system that dictate its operation, ensuring optimal performance and functionality.

VFD

A Variable Frequency Drive, a type of motor controller that drives an electric motor by varying the frequency and voltage of its power supply, optimizing motor performance.

Relay Outputs

Relay outputs refer to the electrical outputs that are switched by a relay, allowing control over larger loads or different voltages than the controlling signal.

Auxiliary Contacts

Additional contacts in electrical devices, like relays or contactors, that are used to perform secondary functions, such as signaling or interlocking circuits.