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You are evaluating a poject for your compory You estimate the sales price to be $10 per unt and sales volume to be 3,000 units

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You are evaluating a poject for your compory You estimate the sales price to be $10 per unt and sales volume to be 3,000 units in year 1,10,000 units in yeor 2 and 1,000 units in year 3 The project has a three year life Variable costs amount to $3 per unt ond fixed costs are $25,000 per year The project requires an intial investenent of $50,000in assets that will be deprecioted straight tine to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be 510,000 NWC requiements at the beginning of each year will be opprowimately 25 percent of the projected snles dunng the coming year. The tax fote is 21 percent and the required return on the project is 15 percent. What is the operating cash fow for the project in year 2 ? Mulhiple Choice 548700 518287 $39040

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