Kurt's Cabinets is looking at a project that will require $80,000 in net fixed assets and another $20,000 in operating working capital in year 0. No new operating working capital is required in later years. The project is expected to produce sales of $110,000 with associated costs of $70,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project (i.e., equal annual depreciation expenses over project life). There is no salvage value. The tax rate is 35%. What is the free cash flow in year 2?

$9,750

$13,000

$15,000

$20,000

$26,000