1. Novanta, Inc. is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 16,000 units, 4 percent. The expected variable cost per unit is $12, and the expected fixed costs are $72,000. The fixed and variable cost estimates are considered accurate within a 5 percent range. The sales price is estimated at $22 a unit, 5 percent. The project requires an initial investment of $174,000 for equipment that will be depreciated using the straight-line method to zero over the project's life. The equipment can be sold for $58,000 at the end of the project. The project requires $30,000 in net working capital for the three years. The discount rate is 11% percent and tax rate is 25 percent. What is the operating cash flow for year 2 under the optimistic case scenario?

   		$76,552
   		$87,800
   		$98,584
   		$109,216
   		$117,322