TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?

Respuesta :

Answer:

answer is $425 .

Explanation:

free cash flow= NOPAT - Net investment in total operating capital= $925 - ($2,500 - $2,000)= $925 - $500 = $425.