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You evaluate a new $3-$year project which requires the purchase of new equipment for $$60,000.$ The project will also require an increase in inventory of $$2,000$ and there will be no change in accounts payable. The project will have: $($i$)$ annual sales of $$25,000$; $($ii$)$ annual variable costs of $$3,000$; and $($iii$)$ annual fixed costs of $$2,000.$ The firm's marginal tax rate is $40$ percent and its discount rate for this type of project is $10$ percent. The equipment will be sold after three years for $$20,000.$ Depreciation will be $$19,800$ for year one; $$27,000$ for year two; $$9,000$ for year three; and $$4,200$ for year four.

What is the cash flow for year $2(C{F}_2)?$

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