Mary$$s Pub wants to determine a more accurate estimate of her free cash flows by making the

following assumptions for the project:

Projected Annual Revenue of $$200,000$

Annual Operating Expenses of $$150,000($no Cost of Goods Sold$)$

A straight line depreciation of $3$ years applied to the $$100,000$ Initial Outlay

A $20\%$ tax rate

There is no increase in supplies, inventory, accounts payable or any other changes in working

capital.

What is the total initial outlay and the annual free cash flows?

IO $=$

EBITDA $=$ Revenue Less Operating Expenses

Less

Less

Net Income $=$

FCF Year $1=$

FCF Year $2=$

FCF Year $3=$