Question #18
Reading: Reading 21 Free Cash Flow Valuation
PDF File: Reading 21 Free Cash Flow Valuation.pdf
Page: 7
Status: Correct
Correct Answer: C
Question
In computing free cash flow, the most significant non-cash expense is usually:
Answer Choices:
A. deferred taxes
B. capital expenditures
C. depreciation
Explanation
Depreciation is usually the largest non-cash expense.