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Cyberdine Systems recently reported $9,800 of sales, $5,200 of operating costs other than depreciation, and $900 of depreciation. The company had no amortization charges. It

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Cyberdine Systems recently reported $9,800 of sales, $5,200 of operating costs other than depreciation, and $900 of depreciation. The company had no amortization charges. It had $3,000 of outstanding bonds that carry a 6% interest rate, and its federal-plus-state income tax rate was 30%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $1,600 to buy new fixed assets and to invest $600 in net operating working capital. How much free cash flow did the company generate? $390 $1.290 $90 $2,364 $1,164

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