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An analyst for Jamison Industries is estimating the firm's free cash flows for the current year. A review of the firm's documents revealed the
An analyst for Jamison Industries is estimating the firm's free cash flows for the current year. A review of the firm's documents revealed the following: . . . The firm's operating income (EBIT) is $4,500. The firm's tax rate is 25%. The firm's capital expenditures for the year were $2,250 and its depreciation expense is $475. So, the firm's net capital expenditures for the year were $1,775. The firm's operating current assets increased by $825, and its operating current liabilities increased by $600. What is the firm's free cash flow? O $1,125 O $1,375 $1,600 $1,850 O $2,025
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