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Creminy, Inc. estimates revenue of $70,000, costs of $35,000, and depreciation of $8,000 related to a new project. The marginal tax rate is 34%. The
Creminy, Inc. estimates revenue of $70,000, costs of $35,000, and depreciation of $8,000 related to a new project. The marginal tax rate is 34%. The project will require a capital expenditure of $55,000. It will also require an additional $18,000 in current assets and will create an extra $14,000 in current liabilities.
What are the incremental earnings?
What is the change in net working capital?
What is the free cash flow?
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