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You are using the value-based management model. Based on the following data, what is the free cash flow for year 1? Year 1 Revenue 665.00
You are using the value-based management model. Based on the following data, what is the free cash flow for year 1?
Year |
| 1 |
Revenue |
| 665.00 |
Fixed costs |
| 80.00 |
Variable costs |
| 250.00 |
Additional investment in NWC |
| 5.00 |
Additional investment in operating long-term assets |
| 50.00 |
Depreciation |
| 60.00 |
|
|
|
Tax rate | 0.40 |
|
Select one:
a. $180
b. $185
c. $175
d. $170
e. $165
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