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?

| 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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