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You are evaluating a capital investment that promises in year 1 revenue of $480,000.00 with operating expenses of $300,000 and depreciation of $50,000 with a tax rate of 25%. Using this information only, what is the free cash flow in year 1? O $180,000 O $147,500 O $130,000 O $97,500

You are evaluating a capital investment that promises in year 1 revenue of $480,000.00 with operating expenses of $300,000 and depreciation of $50,000 with a tax rate of 25%. Using this information only, what is the free cash flow in year 1? O $180,000 O $147,500 O $130,000 O $97,500

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You are evaluating a capital investment that promises in year 1 revenue of $480,000.00 with operating expenses of $300,000 and depreciation of $50,000 with a tax rate of 25%. Using this information only, what is the free cash flow in year 1? $180,000 $147,500 O $130,000 O $97,500
Transcribed Image Text:You are evaluating a capital investment that promises in year 1 revenue of $480,000.00 with operating expenses of $300,000 and depreciation of $50,000 with a tax rate of 25%. Using this information only, what is the free cash flow in year 1? $180,000 $147,500 O $130,000 O $97,500
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