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TaiGueLe Enterprises, Inc. is considering launching a new corporate project. The company will have to make Capital Investments, Invest in Changes in Net Working Capital,

TaiGueLe Enterprises, Inc. is considering launching a new corporate project. The company will have to make Capital Investments, Invest in Changes in Net Working Capital, and generate Cash Flows from Operating the new project. The company uses Straight-Line depreciation and has a Tax Rate of 20%. The appropriate discount rate for the risks involved is 12%. More details are shown below:

Year 1 2 3 4 5 6
Revenue

5,000,000

5,300,000 5,600,000 5,900,000 6,000,000 5,000,000
Cash Expense 2,400,000 2,544,000 2,688,000 2,832,000 2,880,000 2,500,000
Depreciation 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000
End of Year NWC 500,000 530,000 560,000 590,000 600,000 500,000

In year 6, the firm sells the capital equipment for $600,000. What is the firm's operating cash flow in year 3?

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