ABC Inc is considering a project with a five-year life. The project requires $32,000 of fixed assets that are classified as five-year property for MACRS. Variable costs equal 67 percent of sales, fixed costs are $12,600, and the tax rate is 34 percent. What is the operating cash flow for Year 3 given the following sales estimates and MACRS depreciation allowance percentages?

		$1,409.80
		$1,311.16
		$1,526.64
		-$2,276.60
		$640.89

1 Year Sales MACRS rate 2 3 4 3 $32,000 $34,500 $35,600 $38,900 $42,000 20.00 32.00 19.20 11.52 11.52