chapter 11 question 2

Help Next question (Calculating from canh towa) Spartan Storos is expanding operations with the introduction of a new distribution centie Not only will ales increase but investment in inventory will decline don to increased efficiencies in getting inventory to showrooms As a result of this new distribution center Spartan expect a change in EBIT of $900,000 Athough inventory is expected to drop from $89.000 to $65.000 accounts receivables are expected to climb as result of increased credit cales from $86,000 to $130.000In addition accounts payable are expected to increase from $65,000 to $89.000 This project will also produce $250,000 of bonus depreciation in year 1 and Spartan Stores is in the 35 percent marginal tax rate What is the projects tree cash flow in year 17 The projects from cash flow in year in Round to the nearest dou) 10:30 PM 70F Cloudy AGO o