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(Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product that is expected to increase its net operating income by $775,000.

(Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product that is expected to increase its net operating income by $775,000. Tetious Dimensions has a 34 percent marginal tax rate. This project will also produce $200,000 of depreciation per year. In addition, this project will cause the following changes: Without the Project With the Project Without the Project With the Project Accounts receivable $ 55,000 $ 89,000 Inventory 100,000 180,000 Accounts payable 70,000 120,000 What is the project?s free cash flow for Year 1? image text in transcribed

(Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product that is expected to increase its net operating income by $775,000. Tetious Dimensions has a 34 percent marginal tax rate. This project will also produce $200,000 of depreciation per year. In addition, this project will cause the following changes: Without the Project With the Project Accounts receivable Inventory Accounts payable Without the Project $ 55,000 With the Project $ 89,000 100,000 180,000 70,000 120,000 What is the project's free cash flow for Year 1

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