Fall 2020, 13051 Amadou Barry 11/02/20 8:55 PM Homework: Chapter 11 Homework Save ind Score: 0 of 1 pt 2 of 13 (0 complete) HW Score: 0%, 0 of 13 pts Problem 11-6 (similar to) Question Help (Calculating free cash flows) Spartan Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but investment in inventory will decline due to increased efficiencies in getting inventory to showrooms. As a result of this new distribution center, Spartan expects a change in EBIT of $900,000. Although Inventory is expected to drop from $80,000 to $66,000 accounts receivables are expected to climb as a result of increased credit sales from $89,000 to 5130,000. In addition, accounts payable are expected to increase from $50,000 to 590.000 This project will also produce $250.000 af bonus depreciation in year 1 and Spartan Stores is in the 32 percent marginal tax rate What is the project's free cash flow in your 1? The project's free cash flow in year 1 is 5 (Round to the nearest dollar)