• A company is considering a new 6-year project that will have annual sales of $204,000 and costs of $126,000. The project will require fixed assets of $245,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 40 percent. What is the operating cash flow for Year 2?

  Multiple Choice

• $62,560

• $78,160

• $65,616

• $63,133

• $58,090