Fieldstone dimensions is introducing a new product that it expects will increase its net operating income by $475,000. The company has a 30 persent marginal tax rate. THis project will also produce $200,000 of depreciation per year. In addition,it will cause the following changes.

a)Compute the project's free cash flow for year 1

	Without the Project	With the Project
Accounts receivable	$105,000	$130,000
Inventory	200,000	280,000
Accounts payable	90,000	130,000