in year 2; and 2,500 units in year 3. The project has a three-year llfe. Variable costs amount to $10 per unit and fixed costs are $75,000 per year. The project requlres an initial investment of $25,000 in assets that will be deprecioted straight-line to zero over the three-year project life- The octual market value of these assets at the end of year 3 is expected to be $5,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected soles during the coming yeor. The tax rate is 21 percent and the required return on the project is 13 percent. What change in NWC occurs at the end of year 1 ? Multiple Cholice $13,000 $34.000 $50.000 $75.000