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Bad Company has a new 4 - year project that will have annual sales of 8 , 4 0 0 units. The price per unit

Bad Company has a new 4-year project that will have annual sales of 8,400 units. The price per unit is $19.90 and the
variable cost per unit is $7.65. The project will require fixed assets of $94,000, which will be depreciated on a 3-year
MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41
percent, respectively. Fixed costs are $34,000 per year and the tax rate is 25 percent. What is the operating cash flow for
Year 3?
$20,705
$80,655
$57,550
$55,155
$60,744
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