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. The Telenet approved a new project that will generate the following figures for each year for the next 13 years: Revenue of $62 million, Operating Expenses of $27 million, and Depreciation and Amortization of S5 million. The marginal tax rate is 35%, what is Telenets Free Cash Flow inthe 5th win O 2 26.95 milliorn O 19.50 million 。2548 million O 23.52 million 。2450 million
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Answer #1

Revenue = $62 million
Operating Expenses = $27 million
Depreciation and Amortization = $5 million
Tax Rate = 35%

EBIT = Revenue - Operating Expenses - Depreciation and Amortization
EBIT = $62 million - $27 million - $5 million
EBIT = $30 million

Free Cash Flow = EBIT * (1 - tax) + Depreciation and Amortization
Free Cash Flow = $30 million * (1 - 0.35) + $5 million
Free Cash Flow = $19.50 million + $5 million
Free Cash Flow = $24.50 million

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