Given the Following Data for Year-1

question 38

Multiple Choice

Given the following data for year-1:
Profits after taxes = $20 millions; Depreciation = $6 millions; Interest expense = $4 millions; Investment in fixed assets = $12 millions; and Investment in working capital = $4 millions; Calculate the free cash flow (FCF) for year-1:

• A) $4 millions
• B) $6 millions
• C) $10 millions
• D) none of the above

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