Which of the Following Equations Correctly Defines Free Cash Flow

question 19

Multiple Choice

Which of the following equations correctly defines Free Cash Flow?

• A) EBIT × (1-tax rate) + CCA - Net Investment- Change in Working Capital
• B) (Gross Profit - Depreciation) × (1-tax rate) - Net Investment - Change in Working Capital
• C) (Gross Profit - Capital Cost Allowance) - Net Investment - Change in Working Capital
• D) (Gross Profit - Depreciation) - Net Investment - Change in Working Capital

---

Definitions:

Initial Disaster

The first major catastrophic event that triggers a series of responses or crises, often necessitating emergency intervention.

Crisis Intervention Services

Organizations or programs that offer immediate, short-term assistance to individuals experiencing an acute psychological crisis aiming to minimize stress and improve coping mechanisms.

Educational Seminars

Workshops or lectures aimed at providing information and insights on specific topics to enhance knowledge and skills.

Individual Counseling

A therapeutic process where a counselor works one-on-one with a client to address personal issues, promote growth, and foster well-being.