Calculating changes in net operating working capital

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{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 $750,000. Tetious Dimensions has a 32 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Accounts receivable $50,000 $92,000 Inventory 00,000 134,000 Accounts payable 6T,000 119,000 (Click on the icon 9. in order to copy its contents into a spreadsheet.) What is the project's free cash ?ow in year 1? The free cash ?ow of the project in year 1 is $ 645000 . (Round to the nearest dollar.)

Reference no: EM133055113

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