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Given the following data for a given period, compute the free cash flow to the firm: Net Income = $10,000
After-tax Interest Expense = $1,000
Depreciation = $1,000
Increase in NWC = $1,000
Capital Expenditures = $2,000
Accelerated Depreciation
A depreciation method that allows faster write-off of assets in the initial years of asset life.
Accumulated Depreciation
The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and put into use.
Fixed Asset
Long-term tangible assets used in the operations of a business that are not expected to be converted to cash in the short term.
Book Value
The net value of an asset or company, calculated by subtracting liabilities from assets and often used to assess the worth of tangible assets on balance sheets.
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