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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
The project's free cash flow in year is $
Round to the nearest dollar.
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