Lovato Motors Inc. has cash flows from operating activities of $720,000. Cash flows used for investments in property, plant, and equipment totaled $440,000, of which 85% of this investment was used to replace existing capacity.Determine the free cash flow for Lovato Motors Inc.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
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ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
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Chapter3: Financial Statements, Cash Flow, And Taxes
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Lovato Motors Inc. has cash flows from operating activities of $720,000. Cash flows used for investments in property, plant, and equipment totaled $440,000, of which 85% of this investment was used to replace existing capacity.
Determine the free cash flow for Lovato Motors Inc.

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