You are evaluating a product for your company. You estimate the sales price of product to be $$210$ per unit and sales volume to be $11,100$ units in year $1$; $26,100$ units in year $2$; and $6,100$ units in year $3.$ The project has a $3$ year life. Variable costs amount to $$135$ per unit and fixed costs are $$211,000$ per year. The project requires an initial investment of $$357,000$ 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 $$51,000.$ NWC requirements at the beginning of each year will be approximately $16\%$ of the projected sales during the coming year. The tax rate is $21\%$ and the required return on the project is $11\%.$ What will the year $2$ free cash flow for this project be$?$You are evaluating a product for your company. You estimate the sales price of product to be $$210$ per unit and sales volume to be $11,100$ units in year $1$ ;

$26,100$ units in year $2$ ; and $6,100$ units in year $3.$ The project has a $3$ year life. Variable costs amount to $$135$ per unit and fixed costs are $$211,000$ per

year. The project requires an initial investment of $$357,000$ 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 $$51,000.$ NWC requirements at the beginning of each year will be approximately $16\%$

of the projected sales during the coming year. The tax rate is $21\%$ and the required return on the project is $11\%.$ What will the year $2$ free cash flow for this

project be$?$

Multiple Choice

$$1,404,725$

$$2,076,725$

$$1,285,725$

$$1,627,500$