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:

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher, writer, and composer who contributed to political philosophy, education, and literature, famous for his concepts of the "social contract" and the nature vs. nurture debate.

Hobbes

Refers to Thomas Hobbes, a 17th-century English philosopher known for his social contract theory, outlined in his work "Leviathan", advocating for the necessity of an absolute sovereign for societal peace.

Locke

John Locke was a 17th-century English philosopher and political theorist, considered one of the founding figures of modern philosophical empiricism and liberalism.

Free Markets

Economic systems in which prices for goods and services are determined by the open market and consumers, with minimal government intervention.