Duncan Motors is introducing a new product and has an expected change in net operating income…

Duncan Motors is introducing a new product and has an expected
change in net operating income of ​$310,000.
Duncan Motors has a 32 percent marginal tax rate. This project
will also produce ​$51,000of depreciation per year. In​ addition,
this project will cause the following changes in year​ 1:

Without the Project

With the Project

Accounts receivable

​$31,000

​$28,000

Inventory

20,000

35,000

Accounts payable

47,000

84,000

What is the​ project’s free cash flow in year​ 1?