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Revenue Expense Depreciation Pre-tax profit Taxes After-tax profit Plant and equipment Increased working capital Free cash flow 1 2 $1,600 $1,600 700 700 300 300
Revenue Expense Depreciation Pre-tax profit Taxes After-tax profit Plant and equipment Increased working capital Free cash flow 1 2 $1,600 $1,600 700 700 300 300 600 600 300 300 300 300 $1,500 -850 300 -300 $1,800 $ 600 $1,750 In a discounted cash flow analysis of Giant Corp.'s project described in the problem above, what would be the projected Year 2 free cash flow? Multiple Choice $1,300 O $1,450 Multiple Choice $1,300 $1,450 $1,700 $1,750
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