Question: (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in

(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious

(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $770,000. Tetious Dimensions has a 33 percent marginal tax rate. This project will also produce $190,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Accounts receivable Inventory Accounts payable Without the Project With the Project $53,000 $95,000 95,000 178,000 73,000 125,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the project's free cash flow in year 1? The free cash flow of the project in year 1 is (Round to the nearest dollar.)

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