Question: (Calculating changes in net operating working capital) Racin' Scooters is introducing a new product and has an expected change in net operating income of
(Calculating changes in net operating working capital) Racin' Scooters is introducing a new product and has an expected change in net operating income of $455,000. Racin' Scooters has a 32 percent marginal tax rate. This project will also produce $97,000 of depreciation per year. In addition, this project will cause the following changes in year 1:1 Accounts receivable Inventory Accounts payable Without the Project With the Project $43.000 $58,000 64,000 75,000 73,000 97,000 (Click on the icon in order to copy its contents into a spreadsheet) What is the project's free cash flow in year 1? NEED The free cash flow of the project in year 1 is $(Round to the nearest dollar.)
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