Management expects a project to generate EBIT of $600,000 per year for 4 years. Depreciation expense is expected to be $225,000 per year and the corporation’s tax rate is 40%. The project will require...

Management expects a project to generate EBIT of $600,000 per year for 4 years.
Depreciation expense is expected to be $225,000 per year and the corporation’s tax rate
is 40%. The project will require an increase in net working capital of $50,000 in year
one and allow a decrease in net working capital of $25,000 in year four. The capital
expenditure for the project will occur in year zero. What is the free cash flow for the
project in year one?