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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 $450 per unit and sales volume
to be 1,000 units in year 1; 1,500 units in year 2; and 1,325
units in year 3. The project has a 3-year life. Variable costs
amount to $250 per unit and fixed costs are $100,000 per
year. The project requires an initial investment of $180,000 in
assets, which can be depreciated using bonus depreciation.
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 30 percent of the
projected sales during the coming year. The tax rate is 21
percent and the required return on the project is 12 percent.
What is the operating cash flow for the project in year 2?
Note: Enter your answer as a whole number.
Operating cash flow
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