For project A, the change in net working capital is expected to be $900 at time 0, the cash flow effect from the change in net working capital is expected to be $600 at time 1, and the level of net working capital is expected to be $200 at time 2. What is the cash flow effect from the change in net working capital expected to be at time 2?

		$1,300 (plus or minus $10)
		$100 (plus or minus $10)
		-$800 (plus or minus $10)
		-$600 (plus or minus $10)
		None of the above is within $10 of the correct answer

XYZ is evaluating a project that would require an initial investment of $400,000 and is expected to be in operation for 4 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, and 4 are 33.33%, 44.44%, 14.82%, and 7.41%, respectively. For each year of the project, XYZ relevant revenue associated with the project to be $76,000 and relevant costs associated with the project to be $38,000. The tax rate is 50 percent. What is X if X equals (the operating cash flow (OCF) associated with the project expected in year 3 of the project) plus (the OCF associated with the project expected in year 4 of the project)?

		$193,540 (plus or minus $100)
		$82,460 (plus or minus $100)
		$6,460 (plus or minus $100)
		$67,640 (plus or minus $100)
		None of the above is within $100 of the correct answer