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To calculate the forecasted 2025 free cash flow (FCF) for Boxer Ltd, we will use the following formula:

\[
\text{FCF} = \text{EBIT} (1 - \text{Tax rate}) + \text{Depreciation} - \text{Change in Net Working Capital} - \text{Capital Expenditures}
\]

### Step 1: Calculate EBIT after taxes
- **EBIT** for 2025 is $ 93 $ million.
- **Tax rate** is 30%, so:

\[
\text{EBIT after taxes} = 93 \times (1 - 0.30) = 93 \times 0.70 = 65.1 \, \text{million}
\]

### Step 2: Add back depreciation
Depreciation is a non-cash expense, so it is added back:
- Depreciation for 2025 = $ 72 $ million.

\[
\text{EBIT after taxes} + \text{Depreciation} = 65.1 + 72 = 137.1 \, \text{million}
\]

### Step 3: Calculate Change in Net Working Capital (NWC)
NWC = Current Assets - Current Liabilities.

- NWC (2024) = 240 - 90 = $ 150 $ million
- NWC (2025) = 210 - 120 = $ 90 $ million
- Change in NWC = 90 - 150 = $ -60 $ million (decrease in NWC means cash inflow)

### Step 4: Capital Expenditures (CapEx)
CapEx is the change in Net Property, Plant, and Equipment:
- CapEx = 408 - 300 = $ 108 $ million.

### Step 5: Calculate Free Cash Flow
Now, we can calculate the FCF:

\[
\text{FCF} = 137.1 + 60 - 108 = 89.1 \, \text{million}
\]

The forecasted 2025 free cash flow for Boxer Ltd is **$89.1 million**, which corresponds to option **a**.

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Would you like further details or have any questions? Here are five related questions to expand on this:

1. How is the tax rate applied in free cash flow calculations?
2. What impact does depreciation have on cash flow, and why is it added back?
3. How do changes in working capital affect cash flow?
4. What is the difference between operating cash flow and free cash flow?
5. How would a company's investment in capital expenditures impact its future free cash flows?

**Tip:** Free cash flow is critical for assessing a company's ability to generate cash for reinvestment, debt repayment, or distribution to shareholders.

What is the forecasted 2025 free cash flow to the firm for Boxer Ltd?

Learn how to calculate the forecasted free cash flow for Boxer Ltd for 2025. We apply the free cash flow formula using key financial data, such as EBIT, depreciation, changes in working capital, and capital expenditures. Suitable for finance or accounting students at the college level.

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