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

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Racin' Scooters is introducing a new product and has an expected change in EBIT of $425,000. ?Racin' Scooters has a 34 percent marginal tax rate. The project will produce ?$110,000 of depreciation per year. In? addition, the project will cause the following changes in year? 1:

What is the? project's free cash flow in year? 1?

WITHOUT THE PROJECT WITH THE PROJECT

Accounts receivable 43,000 63,000

Inventory 70,000 89,000

Accounts payable 80,000 97,000

Reference no: EM132459542

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