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( Calculating free cash flows ) Spartan Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but
Calculating free cash flows Spartan Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but investment in inventory will decline due to increased efficiencies in getting inventory to showrooms. As a result of this new distribution center, Spartan expects a change in EBIT of $ Although inventory is expected to drop from $ to $ accounts receivables are expected to climb as a result of increased credit sales from $ to $ In addition, accounts payable are expected to increase from $ to $ This project will also produce $ of bonus depreciation in year and Spartan Stores is in the percent marginal tax rate. What is the project's free cash flow in year
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