Racin Scooters is introducing a new product and has an
Racin’ Scooters is introducing a new product and has an expected change in net operating income 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 cause the following changes:


What is the project’s free cash flow for Year1?
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