Question: A company is adding an additional machine to increase its operating capacity. As utilization of the new machine ramps up, the company will see changes

A company is adding an additional machine to increase its operating capacity. As utilization of the new machine ramps up, the company will see changes in revenues, operating costs, taxes, accounts receivable, inventories, accounts payable and other elements of net working capital. For a particular year, changes are detailed below: Revenue will be $103,418 Variable costs will be 64% of revenue Fixed costs (including depreciation expense) will be $34,909 Depreciation expense caused by the new machine will be $5,144 Accounts receivable will increase by $8,323 Inventory will increase $9,414 Accounts payable will increase $6,198 Accrued expenses will increase $2,376 The effective tax rate is 28% During this particular year, the machine will require a major overhaul, which will cost $11,984. This investment will extend the useful life of the machine until the final year of the project. What will be the effect on free cash flow for the year in question? No other factors change.

Enter your answer 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

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