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Business, 09.08.2021 22:00 russbeast6584

​(Calculating free cash flows​) Spartan Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but investment in inventory will decline due to increased efficiencies in getting inventory to showrooms. As a result of this new distribution​ center, Spartan expects a change in EBIT of ​$. Although inventory is expected to drop from ​$ to ​$​, accounts receivables are expected to climb as a result of increased credit sales from ​$ to ​$. In​ addition, accounts payable are expected to increase from ​$ to ​$. This project will also produce ​$ of bonus depreciation in year 1 and Spartan Stores is in the percent marginal tax rate. What is the​ project's free cash flow in year​ 1?

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