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Ling & Co Pty is expected to have earnings before interest and tax (EBIT) of $500,000 in the coming year. It is expected that $120,000
Ling & Co Pty is expected to have earnings before interest and tax (EBIT) of $500,000 in the coming year. It is expected that $120,000 cash flow will be invested to acquire new equipment. Depreciation expense for the year will be $100,000. The net working capital will increase by $50,000. Assume the tax rate is 30% and the company has no outstanding debt. What is the projected free cash flow (FCFF) of the company for the coming year?
Select one:
a.
$160000
b.
$280000
c.
$210000
d.
$230000
e.
$320000
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