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 $495,000.

(Calculating changes in net operating working capital) Racin' Scooters is introducing a new product and has an expected change in net operating income of $495,000. Racin" Scooters has a 30 percent marginal tax rate. This project wil also produce $98,000 of depreciation per year. In addition, this project will cause the following changes in year 1 Without the Project $42,000 60,000 67,000 With the Project S66,000 74,000 90,000 Inventory Accounts payable What is the project's free cash flow in year 1? The free cash flow of the project in year s (Round to the nearest dollar.)
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