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Homework: Chapter 12 Homework (Calculatiny changes in her operamy working capital) Duncan Motors is introducing a new product and has an expected change in net
Homework: Chapter 12 Homework (Calculatiny changes in her operamy working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $295,000. Duncan Motors has a 33 percent marginal tax rate. This project will also produce $51,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $34,000 $25,000 Inventory 20,000 45,000 Accounts payable 46,000 80,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the project's free cash flow in year 1
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