(Calculating free cash flows) Racin' Scooters is introducing a new product and has an expected change in EBIT of $465,000. Racin' Scooters has a 33 percent marginal tax rate. The project will produce $130,000 of depreciation per year. In addition, the project will cause the following changes in year 1:

	Without the project	With the project
Accounts receivable	$40,000	$62,000
Inventory	$69,000	$86,000
Accounts payable	$71,000	$97,000

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

Free cash flow in year 1 is $__________. (Round to the nearest dollar and use thousands separators.)

Group of answer choices

428,550

376,550

298,550

341,450