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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 $430 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 $240 per unit and fixed costs are $100,000 per year. The
project requires an initial investment of $174,000 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 $38,000. NWC requirements at the beginning of each
year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the
required return on the project is 10 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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