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h (Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in not operating income of
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(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in not operating income of $295,000 Duncan Motors has a 36 percent marginal tax rate. This project will also produce $54.000 of depreciation per year. In addition this project will cause the following changes in year 1 Without the Project With the Project Accounts receivable $28.000 $20,000 Inventory 30,000 35,000 Accounts payable 52.000 82,000 (Chok on the icon in order to copy its contents wito o spreadsheet) What is the project's free cash flow in year 1? The free cash flow of the project in year 1 is $ 241,240 (Round to the nearest dollar) Step by Step Solution
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