Calculating free cash flows racin scooters is introducing a


Question: (Calculating free cash flows) Racin' Scooters is introducing a new product and has an expected change in EBIT of $475,000. Racin' Scooters has a 34 percent marginal tax rate. The project will produce $100,000 of depreciation per year. In addition, the project will cause the following changes in year 1.

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