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johnpaech johnpaech
wrote...
Posts: 1098
Rep: 7 0
6 years ago
The free cash flow from the Shepard Industries project in year two is closest to:
A) $345
B) $455
C) $275
D) -$5
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 55 times
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Replies
wrote...
6 years ago
C
Explanation:  C)
Free Cash Flow      
Revenues   1200   1400
- Expenses   450   525
- Depreciation   240   280
= EBIT   510   595
- Taxes (30%)   153   178.5
Incremental Net Income   357   416.5
+ Depreciation   240   280
- Capital expenditures   300   350
- Change in NWC   60   70
Free Cash Flow   237   276.5
johnpaech Author
wrote...
5 years ago
Thanks for helping with my corporate finance course
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