Question: King Nothing is evaluating a new six-year project that will have annual sales of $490,000 and it costs of $332,000. The project will require fixed

King Nothing is evaluating a new six-year project that will have annual sales of $490,000 and it costs of $332,000. The project will require fixed assets of $590,000 which will be depreciated on a five year MACRS schedule. The annual depreciation percentages are 20%, 32%, 19.20%, 11.52%, 11.52%, and 5.76%, respectively. The company has a tax rate of 40%. What is the operating cash flow for year 3?

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