Duncan Motors is introducing a new product and has an expected change in net operating income of $310,000.

Duncan Motors has a 32 percent marginal tax rate. This project will also produce $51,000of depreciation per year. In addition, this project will cause the following changes in year 1:

	Without the Project		With the Project
Accounts receivable	$31,000		$28,000
Inventory	20,000		35,000
Accounts payable	47,000		84,000

What is the project's free cash flow in year 1?