In: Finance
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?
Operating cash flow:
= $850,000-$540,000-$50,000-$28,350
= $231,650
Hence, Operating cash flow is $231,650