You have the following data for year 0 and year 1:
year 0 profit after taxes = $4 million depreciation = $1.5 million fixed assets = $2 million net working capital = $1 million.
year 1 profit after taxes = $5 million depreciation = $2 million fixed assets = $6 million net working capital = $2 million.

calculate the free cash flow for year 1.

Free cash flow for year 1 = -$1m

Explanation:

Lets first understand what free cash flow is. Free cash flow is the cash generated by a business that is freely available for distribution to all investors after having met all the immediate obligations, investment in non-current assets and investment in working capital. Since it's cash flows we have to add back non-cash items such as depreciation and amortization.

The question is asking for free cash flow for year 1 therefore we take data for the year 1 as follows:

Free cash flow for year 1 = $5m + $2m - $6m - $2m  

Free cash flow for year 1 = -$1m

Seems entity has net cash outflows that's why the cash flows are negative.

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

answer trochanter; i believe this is correct, plz check first, good luck;