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Question
Given the following information, compute free cash flow (FCF) in real terms: real growth is 3 percent, real ROIC is 12 percent, real NOPLAT is $5,000, real net working capital from the previous year is $2,000, the inflation index last year was 164, and the inflation index this year is 192.
a) $770.83
b) $2,958.33
c) $2,229.17
d) $3,458.33
Answer
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