Visible fences is introducing a new product and has an

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Reference no: EM13570755

Visible Fences is introducing a new product and has an unexpected change in net operating income of $875,000. Visible Fences has a 33% marginal tax rate. This project will also produce $280,000 of depreciation per year In addition this project will cause the following changes in year

Without project With Project
Accounts Receivable 52000 66000
Inventory 57000 68000
Accounts Payable 92000 108000

What is the free cash flow of the project in year 1?

Reference no: EM13570755

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