Question: 27) Continuing with Authentic Product; consider only the projected cash flows for FY2022. 2022 EBIT $500 Capital Expenditures $400 Changes in Working Capital $400 Depreciation

27) Continuing with Authentic Product; consider only the projected cash flows for FY2022.

2022

EBIT

$500

Capital Expenditures

$400

Changes in Working Capital

$400

Depreciation

$80

Now assume that prior to FY2022 Authentic Products had a loss carry forward of $400. Recalculate the free cash flow, including the impact of the loss carry forward, for FY2022 only

Continue to assume assume a tax rate of 21%.

-$241

-$641

-$485

$500

-$220

-$325

__PRESENT

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!