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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

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