Question: solve (Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of
(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $310.000. Duncan Motor has a 30 percent marginal tax rate. This project will also produce $46,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable S29,000 $25,000 Inventory 28,000 37,000 Accounts payable 46.000 89.000 (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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