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A company has an operating income of $100 million, depreciation of $15 million, an asset sale...

A company has an operating income of $100 million, depreciation of $15 million, an asset sale of $50 million, a capital expenditure of $10 million, and an increase in net working capital of $10 million. Calculate this company’s free cash flow for the year.

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Answer #1

Formula for FCFE = EBIT - Taxes + Depreciation & Amortization - Capex – Change in Working Capital

=100+15+50-10-10

=145 million

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