How much would free cash flow change

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Problem

Consider the following data with regards to free cash flow (FCF):

1. Revenue = $100,849
2. Cash operating expenses = $78,557
3. Depreciation expense = $893
4. Effective tax rate = 21%
5. Incremental investment in operating net working capital = $66
6. Incremental investment in long-term operating assets = $3,216

If depreciation expense was to increase by 5% but everything else remains as shown above, how much would free cash flow change? Assume no other factors change.

Reference no: EM133616117

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