Calculate a firm's free cash flow if it has net operating profit after taxes of £60,000, depreciation expense of £10,000, net fixed asset investment requirement of £40,000, a net current asset requirement of £30,000 and a tax rate of 30%.
A) £30,000
B) £0
C) £(30,000)
D) none of the above.

Question

Quizplus · Accepted Answer

The Answer of Calculate a firm's free cash flow if it has net operating profit after taxes of £60,000, depreciation expense of £10,000, net fixed asset investment requirement of £40,000, a net current asset requirement of £30,000 and a tax rate of 30%.
A) £30,000
B) £0
C) £(30,000)
D) none of the above.

Calculate a Firm's Free Cash Flow If It Has Net