Free cash flow is a. all cash in the bank. b. cash from operations. c. cash from financing less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends. d. cash flow from operations less cash used to purchase fixed assets to maintain productive capacity.

d. cash flow from operations less cash used to purchase fixed assets to maintain productive capacity.

Explanation:

Free cash flow as the name suggests refers to those cash flows which are arrived at after deducting all operating expenses as well as capital expenses, which are free i.e available to owners and investors for distribution.

Such cash flows are free for dividend distribution which means they are not restricted by any sort of due expense or liability payable.

Capital expenditure refers to expenditure on purchase of capital assets i.e long term assets such as machinery.  Capital expenditure is deducted from cash flows from operations.

Free cash flows are expressed as;

Free Cash Flows = Operating Cash Flows - Capital Expenditure

in the problem you wrote said that the taxi charges $0.070 per mile(which would be 7 cents per mile), but then in your suggested equation you have it as $0.70 per mile (which is 70 cents per mile).

the latter seems more realistic, so i will assume that the taxi costs $5.00 and charges $0.70 per mile with tolls costing an additional $3.50. and it asks you to find how far you can travel on $36.50.

let x the number of miles traveled. since the taxi charges $0.70 per mile, multiplying this by the miles traveled (x) will yield the cost of the taxi ride as far as how far it took you. then adding this amount to the cost of the taxi ($5.00) and the additional cost for the tolls ($3.50) will give you the total cost of the taxi ride ($36.50)

that is,

            (0.70)x + 5.00 + 3.50 = 36.50

adding the like terms on the left-hand side of this equation, we arrive at the following:

            (0.70)x + 8.50 = 36.50

subtracting 8.50 from both sides of the equation, we get:

            (0.70)x = 28.00

to solve for x, divide both sides of the equation above by the coefficient of x (that being, 0.70):

            x = 40

thus, you can travel up to 40 miles on $36.50

"a" because he is appealing to logic as oppose to appealing to the audience's emotions.