Wings and More is considering a 3-year project. The straight line depreciation method is applied to all the fixed assets necessary for this project. What is the project operating cash flow in Year 3?

$520,000

$420,000

$720,000

$320,000

$620,000

Initial investment 0 300,000 Annual sales 11'. 1,200,000 Annual operating costs $ 500,000 Initial increase in WC $ 300,000 Resale value $ 200,000 Tax rate 30% Discount Rate 10% Year 0 Year 1 Year 2 Year 3 Initial investment 300,000 Revenue 1,200,000 1,200,000 1,200,000 Operating costs $00,000 500,000 500,000 Depreciation ? '3' '3 EBT 600,000 600,000 600,000 Tax 180,000 180,000 130,000 Net Income 420,000 420,000 420,000 Operating cash ow 520,000 520,000 '1" Net capital Spending (300,000) '? A in NWC 300,000! 300,000 Incremental cash ow (600,000) 520,000 520,000 '1"