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Racin Scooters is introducing a new product and has an expected change in EBIT of $ 4 7 5 , 0 0 0 . Racin

Racin Scooters is introducing a new product and has an expected change in EBIT of $475,000. Racin Scooters has a 21 percent marginal tax rate. Bonus depreciation will be $250,000 in year 1. In addition, the project will cause the following changes in year 1:
WITHOUT THE PROJECT WITH THE PROJECT
Accounts receivable $45,000 $63,000
Inventory 65,00080,000
Accounts payable 70,00094,000

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