(Calculating free cash flows) Racin' Scooters is introducing a new product and has an expected change in EBIT of $445,000. Racin' Scooters has a 35 percent marginal tax rate. Bonus depreciation will be $200,000 in year 1. In addition, the project will cause the following changes in year 1:

WITHOUT THE PROJECT WITH THE PROJECT Accounts receivable 48,000 70,000 Inventory 66,000 86,000 Accounts payable 71,000 90,000

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