Given Are the Following Data for Year 1

question 7

Multiple Choice

Given are the following data for year 1:
Profits after taxes = $14 million; Depreciation = $6 million; Interest expense = $6 million; Investment in fixed assets = $12 million; Investment in working capital = $3 million.Calculate the free cash flow (FCF) for year 1:

• A)$4 million.
• B)$5 million.
• C)$6 million.
• D)$7 million.

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Definitions:

Biofeedback

A technique that teaches individuals to control bodily processes that are typically involuntary, through monitoring and feedback from electrodes.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which was developed by B.F. Skinner to study behavior modification.

Biological Response

A physiological or biochemical reaction of an organism to a specific stimulus, including responses to environmental changes, stress, and diseases.

Functional Magnetic Resonance Imaging

A neuroimaging procedure that measures brain activity by detecting changes associated with blood flow.