During 2010, NICO Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, NICO's free cash flow is
A) -$630,000.
B) -$50,000.
C) $650,000.
D) -$30,000.

Question

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The Answer of During 2010, NICO Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, NICO's free cash flow is
A) -$630,000.
B) -$50,000.
C) $650,000.
D) -$30,000.

During 2010, NICO Corporation Had EBIT of $100,000, a Change