Given Are the Following Data for Year 1

question 70

Multiple Choice

Given are the following data for year 1:
Profit after taxes = $5 million; Depreciation = $2 million; Investment in fixed assets = $4 million; Investment net working capital = $1 million. Calculate the free cash flow (FCF) for year 1.

• A)$7 million
• B)$3 million
• C)$11 million
• D)$2 million

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Definitions:

Companionate

Related to a type of love characterized by deep affection, mutual respect, and long-term commitment, rather than passion or physical attraction.

Passionate

Showing or caused by strong feelings or a strong belief.

Romantic

Relating to feelings of love or a strong emotional connection between people, often characterized by passion and intimacy.

Physical Attractiveness

The extent to which someone's physical appearance is deemed attractive or lovely.