A business has revenue, costs and other details as shown below. A proposed project will cause...

Transcribed Image Text:

A business has revenue, costs and other details as shown below. A proposed project will cause 10% growth of all items except fixed assets, depreciation expense and the tax rate. What will be the free cash flow for the following three years? (You may find it useful to copy the table below into Excel to organize your work) Item Current Yearl Revenue Year 1 Year 2 Year 3 Cash operating expenses Depreciation expense Operating income Tax rate NOPAT (Net Operating Profit After Taxes) Depreciation expense OCF (Operating Cash Flow) Accounts receivable Inventory Accounts payable Accrued expenses Net working capital (per year) Change in net working capital Gross fixed assets (at historical cost) Change in gross fixed assets Free Cash Flow 500,000 375,000 12,500 112,500 25% 84,375 12,500 96,875 41,667 29,167 21,875 31,250 17,709 250,000 type your answer... type your answer... type your answer... Enter your answers as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. If your result is less than zero, enter a negative number, like this: -90.1234 A business has revenue, costs and other details as shown below. A proposed project will cause 10% growth of all items except fixed assets, depreciation expense and the tax rate. What will be the free cash flow for the following three years? (You may find it useful to copy the table below into Excel to organize your work) Item Current Yearl Revenue Year 1 Year 2 Year 3 Cash operating expenses Depreciation expense Operating income Tax rate NOPAT (Net Operating Profit After Taxes) Depreciation expense OCF (Operating Cash Flow) Accounts receivable Inventory Accounts payable Accrued expenses Net working capital (per year) Change in net working capital Gross fixed assets (at historical cost) Change in gross fixed assets Free Cash Flow 500,000 375,000 12,500 112,500 25% 84,375 12,500 96,875 41,667 29,167 21,875 31,250 17,709 250,000 type your answer... type your answer... type your answer... Enter your answers as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. If your result is less than zero, enter a negative number, like this: -90.1234