Question: Is this question answer is 275 or -275? Operating Income 5,500 5,500 (tax on Op Inc.) $1,375.00 $1,100.00 Depreciation Expense 1000 1000 (change in Gross

Is this question answer is 275 or -275?

 Is this question answer is 275 or -275? Operating Income 5,500

Operating Income 5,500 5,500
(tax on Op Inc.) $1,375.00 $1,100.00
Depreciation Expense 1000 1000
(change in Gross Fired Assets) 50 50
(change in Operation Net Working captial) 4000 4000
Free Cash flow 1,075 1,350
NOPAT (Net Operating Profit After Taxes) 4,125 4,400
OCF(Operating Cash Flow) 5,125 5,400
Free cash Flow 1,075 1,350
change 275 or -275??

Consider the following data with regards to free cash flow (FCF): - Revenue =$100,000 - Cash operating expenses =$93,500 - Depreciation expense =$1,000 - Effective tax rate =25% - Incremental investment in operating net working capital =\$50 - Incremental investment in long-term operating assets =$4,000 If the tax rate was to decrease to 20% but everything else remains as shown above, how much would free cash flow change? Assume no other factors change

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