Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dino Inc. is introducing a new product and has an expected change in net operating income of $765000. Dino has a 32% marginal tax rate.
Dino Inc. is introducing a new product and has an expected change in net operating income of $765000. Dino has a 32% marginal tax rate. This project will also produce $175000 of depreciation per year. In addition, this project will cause the following changes to Year1:
Given this information, what is the projects free cash flow in year 1?
With the project | Without the project | |
Acct. Recievale | $85000 | $70000 |
Inventory | 112000 | 32000 |
Acct Payable | 91000 | 67000 |
A- $710800
B- $624200
C- $754600
D- $ 614600
E- $650000
None of the above_______________( fill in the blank)
Please guide me in this question. thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started