What was the firm free cash flow

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Reference no: EM132054519

1. Dr frendeli wants to have an account that will be worth $500,000 when he retires in 35 years he has a lump sum amount of cash he Is simply going to put into an account that earns 7.5% monthly compounded interest. How much will we have to put down now to get the amount he needs in 35 years?

2. Houston Pumps recently reported $230,000 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital. What was the firm's free cash flow? a. 34,202 b. 38,919 c. 043,244 d. 44,423 e. 039,313.

Reference no: EM132054519

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