Given are the following data for year 1:
Profits after taxes = $20 million; Depreciation = $6 million; Interest expense = $4 million; Investment in fixed assets = $12 million; Investment in working capital = $4 million.Calculate the free cash flow (FCF) for year 1:
A) $4 million.
B) $6 million.
C) $8 million.
D) $10 million.
Correct Answer:
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