Question: The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $220,000 and cash expenses by $136,000. The

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $220,000 and cash expenses by $136,000. The initial investment will require $100,000 in fixed assets that will be depreciated using the 5-year MACRS. The company has a marginal tax rate of 38 percent. What is the project OCF in year 2? (Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132)

MACRS 5-year property
Year	Rate
1	20.00%
2	32.00%
3	19.20%
4	11.52%
5	11.52%
6	5.76%

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