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You are evaluating a project for your company. You estimate the sales price to be $300 per unit and sales volume to be 5000 units

You are evaluating a project for your company. You estimate the sales price to be $300 per unit and sales volume to be 5000 units in year 1; 6000 units in year 2; and 4000 units in year 3. The project has a three-year life. Variable costs amount to $100 per unit and fixed costs are $150,000 per year. The project requires an initial investment of $240,000 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 $60,000. NWC required at the beginning of the project. The tax rate is 30 percent and the required return on the project is 13 percent. What is the after-tax operating cash flow for the project in year 0,1,2,3?

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