What is automaton forecasted net income for year

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Question 1: Wall Street analysts forecast an EBIT and depreciation expense of $100 million and 10 million, respectively, for Automaton, Inc. in Year 1. Interest expense is expected to be $20 million. Furthermore, analysts expect Automaton's Net Working Capital to decline by $10 million and its property, plant and equipment to increase by $10 million. Automaton's tax-rate is 40%. What is Automaton's forecasted Net Income for Year 1?

Option 1. $58m

Option 2. $32m

Option 3. $48m

Option 4. $80m

Reference no: EM132582611

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