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Thank You! (Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income
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(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $315,000. Duncan Motors has a 30 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 $25,000 Inventory 22,000 35,000 Accounts payable 54,000 89,000 (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.)Step by Step Solution
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