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You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Farstroke to

You are evaluating a project for The Farstroke golf club, guaranteed to
correct that nasty slice. You estimate the sales price of The Farstroke to
be $460 per unit and sales volume to be 1,200 units in year 1; 1,125 units
in year 2; and 1,000 units in year 3. The project has a 3-year life.
Variable costs amount to $255 per unit and fixed costs are $100,000
per year. The project requires an initial investment of $147,000 in assets,
which will be depreciated straight-line 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 $29,000. NWC requirements at the beginning of each
year will be approximately 25 percent of the projected sales during the
coming year. The tax rate is 21 percent and the required return on the
project is 11 percent.
What is the operating cash flow for the project in year 2?(Enter your
answer as a whole number.)
Operating cash flow
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