K (Calculating changes in net operating working capital) Duncan Moto Duncan Motors has a 32 percent marginal tax rate. This project will also year 1 Without the Project $31.000 27,000 55.000 With the Pe $20,000 44.000 81,000 Accounts receivable Inventory Accounts payable (Click on the soon in order to copy its contents into a spreadsheet What is the project's free cash flow in year 17 The free cash flow of the project in year 1 is $ (Round to the neares

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $315,000.
Duncan Motors has a 32 percent marginal tax rate. This project will also produce $54,000 of depreciation per year. In addition, this project will cause the following changes in
year 1
Without the Project
Accounts receivable
$31.000
Inventory
27,000
Accounts payable
55.000
(Click on the soon in order to copy its contents into a spreadsheet)
What is the project's free cash flow in year 17
The free cash flow of the project in year 1 is $
With the Project
$20,000
44,000
61,000
(Round to the nearest dollar)
Transcribed Image Text:K- (Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $315,000. Duncan Motors has a 32 percent marginal tax rate. This project will also produce $54,000 of depreciation per year. In addition, this project will cause the following changes in year 1 Without the Project Accounts receivable $31.000 Inventory 27,000 Accounts payable 55.000 (Click on the soon in order to copy its contents into a spreadsheet) What is the project's free cash flow in year 17 The free cash flow of the project in year 1 is $ With the Project $20,000 44,000 61,000 (Round to the nearest dollar)
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