Calculating changes in net operating working​ capital) Duncan Motors is introducing a new product and has an expected change in net operating income of ​$300,000. Duncan Motors has a 34 percent...

Calculating changes in net operating working​ capital)

Duncan Motors is introducing a new product and has an expected change in net operating income of ​$300,000. Duncan Motors has a 34 percent marginal tax rate. This project will also produce ​$50,000 of depreciation per year. In​ addition, this project will cause the following changes in year​ 1:

                                 Without the Project     With the Project
Accounts receivable $33,000                        $23,000
Inventory                  $25,000                        $40,000
Accounts payable     $50,000                        $86,000

The free cash flow of the project in year 1 is ​$

(Round to the nearest​ dollar.)