Use the following information to answer the next three questions:

You are evaluating a new project for Chet Holmgren, Inc. $($CHI$).$ The project requires an initial investment of $$570,000$ which will be depreciated using the $3-$year MACRS schedule $($Year $1=33\%,$ Year $2=45\%,$ Year $3=15\%,$ Year $4=7\%).$ The project will increase revenues by $$243,000$ and will increase costs by $$70,000$ each year for the next four years. The project will be sold at the end of $4$ years for $$10,400.$ The project requires an increase in net working capital investment of $$20,000$ which will be recovered at the end of the project$$s life. The tax rate is $25\%$ and the required return on the project is $10\%.$

What is the operating cash flow for the project in year $2?$

Multiple Choice

$$129,750$

$$176,775$

$$151,125$

$$193,875$