Question: You have a pro forma estimate for EBIT next year equal to $625,000. The corporate tax rate is 21% and your depreciation expense is $84,000.

You have a pro forma estimate for EBIT next year equal to $625,000. The corporate tax rate is 21% and your depreciation expense is $84,000. You forecast a decrease in net working capital of $40,000 over the year in capital expenditures of $130,000. What is the estimate free cash flow for the firm?

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