Question: PROBLEM 11-5 CALCULATING FREE CASH FLOWS DATA Change in EBIT 475.000 Tax rate 21% Depreciation 250.000 Without Project With Project Change Accounts Receivable 45.000 63.000

PROBLEM 11-5
CALCULATING FREE CASH FLOWS
DATA
Change in EBIT 475.000
Tax rate 21%
Depreciation 250.000
Without
Project With Project Change
Accounts Receivable 45.000 63.000 18.000
Inventory 65.000 80.000 15.000
Accounts Payable 70.000 94.000 24.000
Calculating Free Cash Flows:
Change in EBIT 475.000
Less: Change in taxes 99.750
Plus: Change in depreciation 250.000
Less Change in net working capital 9.000
Less: Change in capital spending 0
Free cash Flows 0

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