Creminy, Inc. estimates revenue of $83,000, costs of $41,500, and depreciation of $12,000 related to a new project. The marginal tax rate is 34%.
The project will require a capital expenditure of $53,000. It will also require an additional $18,000 in current (operating) assets and will create an extra $14,000 in current (operating) liabilities.
1. What is NOPAT + depreciation?
2. What is the change in net operating working capital?
3. What is the free cash flow?