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?