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You are evaluating a product for your company. You estimate the sales price of product to be $180 per unit and sales volume to be

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You are evaluating a product for your company. You estimate the sales price of product to be $180 per unit and sales volume to be 10,800 units in year 1: 25,800 units in year 2; and 5,800 units in year 3 The project has a 3 year life. Variable costs amount to S105 per unit and fixed costs are $208,000 per year. The project requires an initigl investment of $348,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $48,000 NWC requirements at the beginning of each year will be approximately 14% of the projected sales during the coming year. The tax rate is 34% and the required return on the project is 9%, what wa the year 2 cash flows for this project be? Mutiple Choice $1063,260 $1379 260 85 5 8 WE Ul command option

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