Question: (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tefious Dimensions is introducing a new product and has an expected change in net
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tefious Dimensions is introducing a new product and has an expected change in net operating income of $760.000. Totious Dimensions has a 36 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: Without the Project With the Project Accounts receivable 553 000 $90.000 Inventory 96.000 184,000 Accounts payable 65 000 119,000 What is the project's free cash flow in year 17 The free cash flow of the project in your 1 is $(Round to the nearest dollar)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
