Question
Based on the following data, what is the free cash flow for year 1? Year 1 Revenue 650.00 Other income 15.00 Fixed costs 80.00 Variable
Based on the following data, what is the free cash flow for year 1?
| Year | 1 | |
| Revenue | 650.00 | |
| Other income | 15.00 | |
| Fixed costs | 80.00 | |
| Variable costs | 250.00 | |
| Additional investment in NWC | 5.00 | |
| Additional investment in operating long-term assets | 80.00 | |
| Depreciation | 75.00 | |
| Tax rate | 0.40 |
Select one:
a. $121b. $137c. $116d. $103e. $146
Please show work!
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
