ABC company recently reported $2M of sales, $0.5M of operating costs other than depreciation, and $0.1M of depreciation. The company had $3,000 of outstanding bonds that carry a 10% interest rate, and its federal-plus-state income tax rate was 20%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $0.15M to buy new fixed assets and to invest $0.2M in net operating working capital. What was the firm's free cash flow? $0.90M $0.99M $0.95M $0.87M

ABC company recently reported $2M of sales, $0.5M of operating costs other than depreciation, and $0.1M of depreciation. The company had $3,000 of outstanding bonds that carry a 10% interest rate, and its federal-plus-state income tax rate was 20%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $0.15M to buy new fixed assets and to invest $0.2M in net operating working capital. What was the firm's free cash flow? $0.90M $0.99M $0.95M $0.87M