You are evaluating a product for your company. You estimate the sales price of product to be $100 per unit and sales volume to be 10,000 units in year 1; 25,000 units in year 2; and 5,000 units in year 3. The project has a 3 year life. Variable costs amount to $25 per unit and fixed costs are $200,000 per year. The project requires an initial investment of $325,000 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 $40,000. NWC requirements at the beginning of each year will be approximately 15% of the change in projected sales during the coming year versus the previous year. The tax rate is 34% and the required return on the project is 12%. What will the year 2 cash flows for this project be? a)$1,142,333 b)$1,566,667 c)$1,034,000 d)$1,442,333