Question

(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $770 000. Tetious Dimensions has a 32 percent marginal tax rate. This project Will also produce $216,000 of depreciation per year. In addition, this project Will causa the following changes in year 1: Accounts receivable Inventory Accounts payable Without the Project $60,000 98,000 71,000 With the Project $91,000 186,000 126,000 (Click on the icon in order to copy its contents into a spreadsheet) What is the project's free cash flow in year 1? The free cash flow of the project in year 1 is (Round to the nearest dollar.)