1. In the calculation of operating cash flow, which of the following is the correct formula for calculating taxes?

A.(EBIT Interest) x T B.EBIT x T C.EBITDA x T D.(EBITDA Interest) x T

2. True or False. When net working capital declines, free cash flow goes up.

3. True or False. When calculating the investment in net working capital (for free cash flow) you should use the regular accounting definition of net working capital.

4. Which of the following is an example of a redundant asset?

A.The land occupied by the companys factory

B.The companys accounts receivables

C.Long-term investments in stocks and other securities

D.The companys fleet of delivery trucks