HOW DOES “FREE CASH FLOW” DIFFER FROM NET PROFIT?

a. It is dynamic by increase basement accounting
b. It takes in to care the firm’s ongoing investment in operative collateral as well as bound assets
c. It ignores debasement as well as taxes.
d. It is reduction expensive

{ 1 comment… read it below or add one }

bmspelvis August 21, 2010 at 11:19 am

The answer is B.
The equation for finding is
FCF = CashOp (Cash from Operations) – CapEx (Capital Expenditures)

Where as net profit is taking in all cash expenditures and D+A into account.

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