Given Are the Following Data for Year 1

question 46

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.Calculate the free cash flow (FCF) for year 1:

• A)$4 million.
• B)$6 million.
• C)$8 million.
• D)$10 million.

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