. KLS, Inc. is considering a four-year project that requires the purchase of $2,435,700

worth of equipment. The equipment is in a 30% CCA class. The company will incur $112,500

in annual interest and taxes at the 34% marginal rate for this project. Sales are estimated at

$1.5 million a year with costs averaging $939,500 annually over the life of the project. What

is the operating cash flow in year 4 of the project?

1. $399,114
2. $473,364
3. $473,406
4. $511,656
5. $624,114

Please show the calculations