In 2014, GoPro spent \$27.5$27.5 million on capital expenditures, experienced an increase in net working capital (including cash) equal to \$239$239 million, and realized \$18$18 million in depreciation. What is GoPro's unlevered free cash flow for 2014? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Respuesta :

Answer: -248.5

Explanation: The money a business has before paying its financial obligations is called unlevered cash flow. Example- Money in business left before interest payments and operating expenses is its unlevered cash flow.

It can be computed using following formula :-

UFCF = EBIT- TAXES+ DEPRICIATION - CAPITAL EXPENDITURE - INCREASE IN WORKING CAPITAL

putting the values into equation we have :-

UFCF = 18 - 27.5 - 239

          = -248.5