Solution-Calculating the free cash flows

Calculating the free cash flows

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Reference no: EM133060777

Calculating the free cash flows

A firm is introducing a new product and expected change in net operating income of SAR 15000,000. Its corporate tax is 23%. The project will also produce SAR 4,000,000 depreciation per year. In addition, this cause the following changes:

Data
	Without Project	With Project
Accounts Receivable	375,000	550,000
Inventory	425,000	575,000
Accounts Payable	650,000	825,000
Change in EBIT		15,000,000
Tax rate		23%
Depreciation		4,000,000

Reference no: EM133060777

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Calculating the free cash flows

Reference no: EM133060777

Reference no: EM133060777

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