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Blaze Scooters is considering expanding into a new college town and has the following operating data: Initial Investment in scooters ( year 0 ) :

Blaze Scooters is considering expanding into a new college town and has the following operating data: Initial Investment in scooters (year 0): $107563 Cost of securing permits (assume that permit cost is a tax-deductible expense in year 1): $10398 Anticipated Revenue : $ 198685 for years 1-5. Depreciation of scooters - straight line down to 0 over 5 years Operating expenses (not including Depreciation ): $77855 per year. Tax Rate : 24% Net Working Capital , consisting of cash , spare parts inventory , accounts receivable , and accounts payable: $30,000. Blaze expects to be able to recoup 100% of Net Working if they shut down. Assume that investment in working capital occurs in year at the start of the project. Scrap value of scooters at the end of 5 years : $20,000.( remember that any capital gains when selling are taxable) Assume that Blaze makes the necessary investments , operates for 5 years, and then shuts down , selling the scooters for scrap and recouping Net Working Capital . What are their expected after -tax cash flows for year 2 rounded to the nearest cent ()?

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