$($Calculating changes in net operating working$$ capital$)$Tetious Dimensions is introducing a new product and has an expected change in net operating income of $$$$770,000.$ Tetious Dimensions has a $31$ percent marginal tax rate. This project will also produce $$$$190,000$ of depreciation per year. In$$ addition, this project will cause the following changes in year$1$:

Without the Project

With the Project

Accounts receivable

$$$$52,000$

$$$$87,000$

Inventory

$98,000$

$178,000$

Accounts payable

$72,000$

$121,000$

$($Click on the icon in order to copy its contents into a spreadsheet.$)$

What is the$$ project's free cash flow in year$1?$