Question 25 (1 point) Your boss at the private equity company wants to value a takeover target. To value it, he asks you to determine FCFF using the following income statement for the firm. You also estimate that ongoing annual investment in current assets is $5 million per year and annual expenditures on capital investments are estimated at $8 million per year. $Millions Sales Cost of goods sold 25 Gross Profit 60 85 Selling, general and admin. Depreciation Amortization 16 10 5 31 Earnings before interest and taxes Interest Net income before taxes Taxes Net income 29 8 21 8 13 Assuming taxes on FCFF are $5 million, what is FCFF? a) $15 million b) $21 million c) $22 million d) $26 million