Question: 2-9 (similar to) Question Help Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in
2-9 (similar to) Question Help Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $295,000. Duncan Motors has a 32 percent marginal tax rate. This project will also produce $52,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $31.000 $27,000 Inventory 20,000 37,000 Accounts payable 44,000 82.000 What is the project's free cash flow in year 12 The free cash flow of the project in year 1 is $ (Round to the nearest dolar) Penalt incorrecto Qui R 1 (0) 5 (0/10) 983 14
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
