Your company has spent $180,000 on research to develop a new computer game. The firm is planning to spend $40,000 on a machine to produce the new game. Shipping and installation costs of $5,000 for the machine will be capitalized and depreciated. The machine has an expected life of five years, a $25,000 estimated resale value, and falls under the MACRS five-year class life. Revenue from the new game is expected to be $200,000 per year, with costs of $100,000 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 14 percent, and it expects net working capital to increase by $50,000 at the beginning of the project. What will be the operating cash flow (OCF) for year two of this project? MACRS rates: Year 1: 20.00% Year 2: 32.00% Year 3: 19.20% Year 4: 11.52% Year 5: 11.52% Year 6: 5.76% None of these are correct. $ 70,040 $ 68,150 $ 136,160 $ 133,850