Question

In: Finance

Initial Investment: $1,000,000WACC: 10%Revenue: 850,000COGS: $540,000Operating Expenses: $50,000Depreciation Expense: $125,000Tax...

Initial Investment: $1,000,000
WACC: 10%
Revenue: 850,000
COGS: $540,000
Operating Expenses: $50,000
Depreciation Expense: $125,000
Tax Expense: $28,350

What is the Operational Cash Flow for the first year?

Solutions

Expert Solution

Operating cash flow:

= $850,000-$540,000-$50,000-$28,350

= $231,650

Hence, Operating cash flow is $231,650


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