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fou bre evalusting s product for your compory. You estimate the sales price of the product to be $375 per unt and sales volume to

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fou bre evalusting s product for your compory. You estimate the sales price of the product to be $375 per unt and sales volume to be 500 units in year t 1000 units nn year 2 , and 200 units in yest 3. The project has a three-year life. Variable costs amount to $200 per unit and fiaed costs are 5100,000 per yeac. The project requires an intal invertmeot of 5175 . o0o in assets that wit be deprecioled straight-tine to zero over the three-yeat project life. The actual market value of these arsets at the end of year 3 is expected to be 520.000 . NWC recuiremens at the beginning of ewch yea wit be approximately 25 percent of the projected sales during the coming year. The tax rate is 21 povcent and the required return on the probect. is 10 percent What wit the year 2 tree cash fiow for this project be? Mulple Chouce t.2458 44.93) $40500 witer

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