Net Cash Provided by Operating Activities Is $3

question 45

Multiple Choice

Net cash provided by operating activities is $3.1 million. Planned capital expenditures are $2.5 million. Depreciation expense is $1.3 million per year. What is free cash flow?

• A)($700,000)
• B)$600,000
• C)$1,200,000
• D)$1,800,000

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Definitions:

Exporting

The act of selling goods or services produced in one country to buyers in other countries.

Direct Investment

The purchase or acquisition of a controlling interest in foreign business enterprises.

Direct Investment

The purchase or acquisition of a controlling interest in foreign business enterprises, leading to influence or management rights.

Joint Venture

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.