Question: Maximum, Inc. is considering a new six-year expansion project that requires an initial fixed asset investment of $100,000. The fixed assets will be depreciated using

Maximum, Inc. is considering a new six-year expansion project that requires an initial fixed asset investment of $100,000. The fixed assets will be depreciated using the 5-year MACRS class. The project is estimated to generate $150,000 in annual sales, with costs of $80,000. If the tax rate is 35% and the company uses a discount rate of 10%, what is the present value of the cash flows in year 2? (Round to the nearest whole number) I know that Year 1 - $52,500 Year 2 - ???

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