Question: (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and he 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 he an expected change in net operating income of $785,000. Tetious Dimensions has a 30 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 Inventory Accounts payable $51,000 99,000 72,000 $90,000 175,000 121 000 What is the project's free cash flow in year 17 The free cash flow of the project in year 1 is $ (Round to the nearest dollar)
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