The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $267,000 and cash expenses by $149,000. The initial investment will require $108,000 in fixed assets that will be depreciated using the 5-year MACRS. The company has a marginal tax rate of 31 percent. What is the project OCF in year 2? (Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132)

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $267,000 and cash expenses by $149,000. The initial investment will require $108,000 in fixed assets that will be depreciated using the 5-year MACRS. The company has a marginal tax rate of 31 percent. What is the project OCF in year 2? (Do not include the dollar sign ($). 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%