Calculate the fcff

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Reference no: EM133027831

Question - A is evaluating Invader for 2020. A gathered the following information:

Net Loss: (20,000) Depreciation: 5,000

Investment in working capital: 5,000

Tax rate: 25%

Net borrowing: 12,000

Unrealized Loss: 10,000

Impairment Loss: 50,000

The tax treatment of all non-cash items is the same as that of other items in the books. There are no deferred taxes incurred

1. Calculate the FCFF.

2. Calculate the FCFE.

Reference no: EM133027831

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