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 inyear 1Without the ProjectAccounts receivable$31.000Inventory27,000Accounts payable55.000(Click on the soon in order to copy its contents into a spreadsheet)What is the project's free cash flow in year 17The free cash flow of the project in year 1 is $With the Project$20,00044,00061,000(Round to the nearest dollar)

Name: K-(Calculating changes in net operating working capital) Duncan Motor
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Description: 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 $54,0

Free cash flow refers to the cash generated by the company after deducting all the cash outflows…

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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

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

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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