A company is adding an additional machine to increase its operating capacity. As utilization of the...

 

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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, and taxes. For a particular year, changes are detailed below: Revenue will be $14,591 Cash operating expenses will be $11,210 Depreciation expense caused by the new machine will be $1,644 The effective tax rate is 22% What will be the effect on free cash flow for the year in question? Assume net working capital will not change and the only investment in fixed assets will be the initial investment, so these will not affect annual free cash flows. 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 Type your answer... 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, and taxes. For a particular year, changes are detailed below: Revenue will be $14,591 Cash operating expenses will be $11,210 Depreciation expense caused by the new machine will be $1,644 The effective tax rate is 22% What will be the effect on free cash flow for the year in question? Assume net working capital will not change and the only investment in fixed assets will be the initial investment, so these will not affect annual free cash flows. 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 Type your answer...