Question - Stock market analyst has forecasted the following year-end numbers for Raedebe Technology: Sales=$70 million; EBITDA=$20 million; Depreciation=$7 million; Amortization=$0. The company's tax rate is 40 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total $12 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.) What is the company's forecasted free cash flow for the year?
$2.8 million
$7.0 million
$8.0 million
$12.8 million