Given Are the Following Data for Year 1

question 27

Multiple Choice

Given are the following data for year 1:
Profits after taxes = $20 million; Depreciation = $6 million; Interest expense = $4 million; Investment in fixed assets = $12 million; Investment in working capital = $4 million. The corporate tax rate is 25 percent. Calculate the free cash flow (FCF) for year 1.

• A)$4 million
• B)$6 million
• C)$8 million
• D)$13 million

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Definitions:

Health Awareness Programs

Initiatives designed to inform and educate individuals or communities about important health issues, promoting healthier lifestyles and preventive health practices.

Preventable Illnesses

Diseases that can be avoided through preventive measures, such as vaccinations or healthy lifestyle choices.

Chronic Diseases

Long-lasting medical conditions that are persistent and typically require long-term management or care.

Wellness Program

An organized and supportive initiative designed to promote the health and well-being of individuals, particularly in the workplace.