You are evaluating a product for your company. You estimate the sales price of product to be $110 per unit and sales volume to be 10,100 units in year 1; 25,100 units in year 2; and 5,100 units in year 3. The project has a 3 year life. Variable costs amount to $35 per unit and fixed costs are $201,000 per year. The project requires an initial investment of $327,000 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 $41,000. NWC requirements at the beginning of each year will be approximately 16% of the projected sales during the coming year. The tax rate is 35% and the required return on the project is 11%. What will the year 2 cash flows for this project be? $1,022,125 $1,131,125 $867,125 $1,572,500