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TB MC Qu. 12-14 You are evaluating a project... You are evaluating a project for your company. You estimate the sales price to be $310

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TB MC Qu. 12-14 You are evaluating a project... You are evaluating a project for your company. You estimate the sales price to be $310 per unit and sales volume to be 4300 units in year: 5.100 units in year 2 nd 2.600 units myear 2 The project has a three-year life. Variable costs amount to $160 per unit and fixed costs are $205,000 per year. The project requires an initial investment of $234.000 in sets which will be depreciated straight-line to zero over the three-year project life. The actunt market value of these assets at the end of year 3 is expected to be $41000NWC requirements at the beginning of each year will be approximately 11 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is tt percent. What is the operating cash flow for the project in year 2? Multiple Choice 5482,000 $458780 5491540 $380 780

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