19.You are evaluating a product for your company. You estimate the sales price of product to be $220 per unit and sales volume to be 11,200 units in year 1; 26,200 units in year 2; and 6,200 units in year 3. The project has a 3 year life. Variable costs amount to $145 per unit and fixed costs are $212,000 per year. The project requires an initial investment of $360,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $52,000. NWC requirements at the beginning of each year will be approximately 17% of the projected sales during the coming year. The tax rate is 34% and the required return on the project is 10%. What will the year 2 cash flows for this project be? $1,077,780 $1,197,780 $1,633,000 $636,780