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Calculating changes in net operating working capital ) Tetious Dimensions is introducing a new product and has an expected change in net operating income of

Calculating changes in net operating working capital)Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 33 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year1:
Without the Project With the Project
Accounts receivable $53,000 $87,000
Inventory $103,000 $184,000
Accounts payable $75,000 $117,000
The free cash flow of the project in year 1 is how much?

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