Calculate incremental annual after-tax free cash flow

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You are considering opening another restaurant in the TexasBurgers chain. The new restaurant will have annual revenue of $293,400 and operating expenses of $146,700. The annual depreciation and amortization for the assets used in the restaurant will equal $48,900. An annual capital expenditure of $11,000 will be required to offset wear-and-tear on the assets used in the restaurant, but no additions to working capital will be required. The marginal tax rate will be 40 percent. Calculate the incremental annual after-tax free cash flow for the project. Incremental annual after-tax free cash flow $

Reference no: EM133058397

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