(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 $1,000,000. Although inventory is expected to drop from $89,000 to $65,000, accounts receivables are expected to climb as a result of increased credit sales from $89,000 to $110,000. In addition, accounts payable are expected to increase from $66,000 to $83,000. This project will also produce $300,000 of bonus depreciation in year 1 and Spartan Stores is in the 31 percent marginal tax rate. What is the project's free cash flow in year 1?

1- The project's free cash flow in year 1 is $ (Round to the nearest dollar.)

(Calculating free cash fows) Spartan Stores is oxpanding operations with the introduction of a now distribution center. Not only wili sales increase but investrient in inventory will decline due to increased efficiencies in getting inventory to showrooms. As a result of this new distribution contor, Spartan expects a change in EBIT of $1,000,000, Although inventory is expociod to drop from $69,000 to $65,000, accounts receivabies are oxpected to climb as a result of increased credit sales from $69,000 to $110,000. in addition, accounts payable are expecied to incroase from $66,000 to $83,000. This project will also produce $300,000 of bonus deprecation in year 1 and Spartan Stores is in the 31 percent margirtal tax rate. What is the project's free cash flow in year 1 ? The project's free cash flow in year 1 is \$ (Round to the nearest dollar,)