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 net
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 $795,000 Tetious Dimensions has a 30 percent marginal tax rate This project will also produce $185,000 of depreciation per year. In addition, this project will cause the following changes in year 1 Without the Project With the Project Accounts receivable $53,000 $99.000 Inventory 101.000 177.000 Accounts payable 71,000 117.000 (Click on the loon in order to copy its contents into a spreadsheet) What is the project's free cash flow in year 1
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