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A firm provides the following financial statements, plus the information that their corporate tax rate = 25% and next year's required increase to PP&E $500.

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A firm provides the following financial statements, plus the information that their corporate tax rate = 25% and next year's required increase to PP&E $500. INCOME STMT Sales COGS Gross Profit SG&A EBIT-DA Depreciation expense EBIT interest EBT taxes Net Income current projected 8,000 8,500 5,750 4,675 2,250 3,825 750 1,300 1,500 2,525 750 950 750 1,575 250 250 500 1,325 125 331 375 994 BALANCE SHEET Cash Accts Rec Inventory PP&E Accumulated Dep Total current 500 1,800 3,000 12,000 (4,000) 13,300 projected 700 1,850 3,950 12,400 (4,850) 14,050 Accts Payable Accruals ST portion of LTD Long-Term Debt Common Stock Retained Earnings Total 1,000 575 750 4,375 1,600 5,000 13,300 1,250 625 775 4,005 1,600 5,795 14,050 Calculate projected Free Cash Flow, Select one: a. 731 b. 495 c. 756 O d. 1.444

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