(Calculating changes in net operating working capital)

Duncan Motors is introducing a new product and has an expected change in net operating income of $280,000. 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: $36,000 / $26,000

Inventory: $21,000 / $37,000

Accounts payable: $52,000 / $91,000

What is the project's free cash flow in year 1?