Free Cash Flow = $550 million – $100 million – $175 million.The capital expenditure for the year is $100 million, and the networking capital is $175 million for the year. Taking an example of Exxon Mobil, which has an operating cash flow of $550 million. Hence the Free Cash Flow For the year is $125 Million Example #3 Free Cash Flow = $300 million – $50 million – $125 million.Free Cash Flow = Operating Cash Flow – Capital Expenditure – Net Working Capital.Free cash flow available to the firm for the calendar year is: –
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