Question: Given are the following data for year 1: Profits after taxes = $20 million; Depreciation = $6 million; Interest expense = $4 million; Investment in

Given are the following data for year 1:

Profits after taxes = $20 million; Depreciation = $6 million; Interest expense = $4 million; Investment in fixed assets = $12 million; Investment in working capital = $4 million. The corporate tax rate is 25 percent. Calculate the free cash flow (FCF) for year 1.

A. $4 million

B. $6 million

C. $8 million

D.$13 million

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