Question 2 :(Calculating free cash flows) Racin Scooters is introducing a new product and has an expected EBIT of $475,000. Racin Scooters has a 34 percent marginal tax rate. This Project will also produce $100,000 of depreciation per year. In addition, this project will also cause the following changes: Accounts receivable Inventory Accounts payable Without the project $45,000 65,000 70,000 With the project $63,000 80,000 94,000 What is the project's free cash flow