Answer:
$180,000
Explanation:
The computation of the free cash flow is shown below:
= Before-tax cash flow from operations - depreciation - tax expense + depreciation - invested amount
where,
Tax expense = (Before-tax cash flow from operations - depreciation) × corporate tax rate
= ($500,000 - $100,000) × 30%
= $120,000
And, the other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= $500,000 - $100,000 -$120,000 + $100,000 - $200,000
= $180,000
