Question: i Silver Shipping is evaluating a 5-year project that would require an initial investment in equipment of $390,000. Accelerated : depreciation would be used where

i Silver Shipping is evaluating a 5-year project
i Silver Shipping is evaluating a 5-year project that would require an initial investment in equipment of $390,000. Accelerated : depreciation would be used where the depreciation rates in years 1, 2, 3, and 4 would be 30%, 35%, 20%, and 15%, respectively. In year 2, the project is expected to have relevant revenue of $221,000 and relevant variable costs of $91,000. In addition, Silver : Shipping would have one source of fixed costs associated with the project. Yesterday, Silver Shipping signed a deal with Circle Advertising to develop an advertising campaign for the project. The terms of the deal require Silver Shipping to pay $27,000 to Circle i Advertising in 2 years. The tax rate is 45 percent. What is the operating cash flow for year 2 that Silver Shipping should use in its NPV analysis of the project? Input instructions: Round your answer to the nearest dollar. '[ dollars

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