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(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $285,000

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(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $285,000 Duncan Motors has a 30 percent marginal tax rate. This project will also produce 554,000 of depreciation per year. In addition this project will cause the following changes in year 1 Accounts receivable Inventory Accounts payable Without the Project $35.000 27 000 49,000 With the Project $25,000 36 000 02.000 What is the project's free cash flow in year 1? The free cash flow of the project in yout 1 s (Round to the nearest dottar

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