To calculate other non-cash items,a firm adds back any amortization of ________ to unlevered ________ when calculating free cash flow.
A) intangible assets, net income
B) tangible assets, operating profit
C) intangible assets, operating profit
D) tangible assets, net income

Question

Quizplus · Accepted Answer

Amortization of intangible assets is a non-cash expense that is added back to net income to calculate free cash flow.

To Calculate Other Non-Cash Items,a Firm Adds Back Any Amortization