A Firm Reports That in a Certain Year It Had

question 29

Multiple Choice

A firm reports that in a certain year it had revenues of $4.5 million,costs of $1.2 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.If the firm's marginal corporate tax rate is 30%,what is the firm's free cash flow for that year?

• A)$5.3 million
• B)-$0.65 million
• C)$1.75 million
• D)$2.15 million
• E)$2.35 million

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