Question: Club Corp is evaluating a project that would require an initial investment in equipment of $ 2 8 0 , 0 0 0 that is

Club Corp is evaluating a project that would require an initial investment in equipment of $280,000 that is expected to last for 4 years. MACRS depreciation would be used where the depreciation rates in years 1,2,3, and 4 are 30%,40%,20%, and 10% respectively. For each year of the project, Club Corp expects relevant annual revenue associated with the project to be $174,000 and relevant annual costs associated with the project to be $112,000. The tax rate is 50 percent. What is (X plus Y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 2 of the project and Y is the relevant OCF associated with the project expected in year 3 of the project?

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