The Pitts Limited had EBITDA of $900 million in 2019. The depreciation amount for the period $300m.

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Question:

The Pitts Limited had EBITDA of $900 million in 2019. The depreciation amount for the period $300m. Firms increased investment in fixed assets by $400m from 2018. Firm’s overall investment in working capital at the beginning of 2019 was $100m and at the end the working capital investment amount $145m. If the tax rate is 40%, what is the level of FCFF?

a. $165.3m

b. $455.0m

c. $215.0m

d. $175.3m.