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8. Racing Motors is introducing a new product and has expected change in net operating income of $300,000. Racing Motors has a 34% marginal

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8. Racing Motors is introducing a new product and has expected change in net operating income of $300,000. Racing Motors has a 34% marginal tax rate. This project will also produce $50,000 of depreciation per year. In addition, this project will cause the following changes: Without the Project With the Project $33,000 $23,000 25,000 40,000 50,000 86,000 Accounts Receivable Inventory Accounts Payable What is the project's free cash flow?

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