Tetious Dimensions is introducing a new product that is expected to increase it net operating income by $775,000. Tetious Dimensions has a 21% marginal tax rate. This project will also produce $200,000 of depreciation per year. In addition, this project will cause the following changes:
Without the Project With the Project
Accounts Receivable $55,000 $89,000
Inventory $100,000 $180,000
Accounts Payable $70,000 $120,000
What is the projects free cash flow for year 1?