Creminy, Inc. estimates revenue of $81,000, costs of $40,500, and depreciation of $8,000 related to a new project. The marginal tax rate is 34%.

The project will require a capital expenditure of $54,000. It will also require an additional $18,000 in current (operating) assets and will create an extra $14,000 in current (operating) liabilities.

Part 1

What is the operating cash flow?

Part 2

What is the change in net working capital?

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Part 3

What is the free cash flow?