A Firm Reports That in a Certain Year It Had

question 14

Multiple Choice

A firm reports that in a certain year it had unlevered net income of $4.5 million,a capital cost allowance (CCA) deduction of $2.8 million,capital expenditures of $2.3 million,and net working capital decreased by $1.5 million.What is the firm's free cash flow for that year?

• A)$2.4 million
• B)$6.5 million
• C)$8.1 million
• D)$11.1 million
• E)$5.5 million

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Definitions:

Finally Block

A block in Java that follows try-catch blocks and is executed regardless of an exception being thrown or not.

Exception Occurs

A runtime event that disrupts the normal flow of instructions in a program, often due to errors.

Catch Block

A section of code designed to handle exceptions in a try-catch statement in programming languages like Java.

Try Block

A try block in programming is used to enclose code that might throw an exception, allowing it to be caught and handled gracefully.