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​(Calculating changes in net operating working​ capital)  Tetious Dimensions is introducing a new product and has...

​(Calculating changes in net operating working​ capital)  Tetious Dimensions is introducing a new product and has an expected change in net operating income of ​$795,000. Tetious Dimensions has a 36 percent marginal tax rate. This project will also produce ​$205,000 of depreciation per year. In​ addition, this project will cause the following changes in year​ 1:

Without the Project / With the Project

Accounts receivable: ​$50,000 / ​$84,000

Inventory: $97,000 / $181,000

Accounts payable:   $65,000 / $119,000

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

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