Given the following data for a given period, compute the free cash flow to the firm:

Net Income = $10,000
After-tax Interest Expense = $1,000
Depreciation = $1,000
Increase in NWC = $1,000
Capital Expenditures = $2,000
A) $9,000
B) $9,500
C) $9,700
D) $9,900

Answer: A

Business

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