Use the following information for the next 2 questions. Fiduciary Responsible Tees Corp. is considering launching a new clothing line. The project would require a $5,763,489 capital investment and will be depreciated (straight-line to zero) over its 4-year life. The company discovers at the end of the project that it will be able to sell the equipment for $3,611,742 (salvage value). Incremental sales are expected to be $16,003,799 annually for the 4-year period with costs (excluding depreciation) of 64% of sales. The project would also require the company to increase inventory levels by $1,495,912. The company has a 21% tax rate.

What is the project cash flow (cash flow from assets) for Year 2? ($4,854,064, $5,395,500, $4,320,495, $4,551,480, $5,992,353) Options What is the project cash flow (cash flow from assets) for Year 4? ($6,349,976, $6,211,428, $9,203,252, $10,097,000, $9,961,718) Options