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You are evaluating a project for The Tiffany golf club, guaranteed to correct that nasty slice You estimate the sales price of The Tif any
You are evaluating a project for The Tiffany golf club, guaranteed to correct that nasty slice You estimate the sales price of The Tif any to be $500 per unit and sales volume to be 1,200 units in year t 1125 units in year 2 and 1,000 units in year 3. The project has a 3. year life. Variable costs amount to $275 per unit and foxed costs are $100.000 per year The project requires an initial investment of 5135,000 in assets, which will be depreciated straight 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 $25,000. 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 39 percent and the required return on the project is 12 percent What is the operating cash flow for the project in year 2? (Enter your answer as a whole number Operating cash flow es
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