Given the following data for a given period,compute the free cash flow to the firm: Net Income = $5000
After-tax Interest Expense = $500
Depreciation = $500
Increase in NWC = $1000
Capital Expenditures = $2000
A)$3000
B)$3500
C)$3700
D)$3900
E)$4200

Question

Quizplus · Accepted Answer

Free cash flow to the firm = Net Income + Depreciation - Increase in NWC - Capital Expenditures= $5000 + $500 - $1000 - $2000= $3500

Given the Following Data for a Given Period,compute the Free