Calculating changes in net operating working capital: Duncan Motors is introducing a new product and has an expected change in net operating income of $310,000. Duncan Motors has a 31 percent marginal tax rate. This project will also produce $48,000 of depreciation per year. In addition, this project will cause the following changes in year 1:

Accounts Receivable: $36,000 (without project), $17,000 (with project) Inventory: 23,000 (without Project), 38,000 (with project) Accounts Payabble: 55,000 (without Project), 85,000 (with project)