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thank you. + like Temporary Housing Services Incorporated (THSI) is...

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Finance

thank you. + like
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Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing facility in an area recently damaged by a hurricane. THSI will lease space in this facility to various agencies and groups providing relief services to the area. THSI estimates that this project will initially cost $4 million to set up and will generate $20 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $12 million during this year and depreciation expense will be another $2 million. THS will require no working capital for this investment THSI's tax-rate is 20%. Ignoring the original investment of $5 millon, what is THSI's free cash flow for the first and only year of operation? A. $6.80 million B. $2.80 million OC. $8.50 million OD. $4.00 million

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