(Calculating

free cash flowsSpartan 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 $900,000 While inventory is expected to drop from $90, 000 to $70, 000, accounts receivables are expected to climb as a result of increased credit sales from $80,000to $110,000

. In addition, accounts payable are expected to increase from $65 ,000 to $80,000

. This project will also produce $300 ,000

of depreciation per year and Spartan Stores is in the 34 percent marginal tax rate. What is the project's free cash flow in year 1?