Calculate a Firm's Free Cash Flow If It Has Net

question 116

Multiple Choice

Calculate a firm's free cash flow if it has net operating profit after taxes of $60,000, depreciation expense of $10,000, net fixed asset investment requirement of $40,000, a net current asset requirement of $30,000 and a tax rate of 30%.

• A) $0.
• B) $30,000.
• C) -$30,000.
• D) none of the above.

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Definitions:

MAOIs

Short for Monoamine Oxidase Inhibitors, a class of antidepressant drugs that work by inhibiting the enzyme responsible for breaking down neurotransmitters such as serotonin and norepinephrine.

Restricted Diet

A diet that limits or eliminates certain foods or nutrients, often for medical or health reasons.

High Blood Pressure

A condition in which the force of the blood against the walls of the arteries is consistently too high, leading to health risks.

Benzodiazepine

A class of psychoactive drugs known for their sedative, hypnotic, anxiolytic, anticonvulsant, and muscle relaxant properties.