XYZ Corp. is considering introducing a new 90" flat screen television/monitor for the consumer market. The company's CFO has collected the following information about the proposed product. If the company goes ahead with the proposed product, it will have an effect on the company's net working capital. At the outset (ie, at t = 0). inventory will increase by $190,000 and accounts payable will increase by $70,000. At t = 4, the net working capital will be recovered after the project is completed The company already owns a section of land where the facility could be built. The land is estimated to have a market value of $2 million. The company plans to sell the land for its current market value if it is not used for this project. The screen is expected to generate sales revenue of $5,500,000 per year. Each year the operating costs (not including depreciation) are expected to be 2.525.000 - The company's interest expense each year will be $350,000 . Because the new product line is similar to another of XYZ's existing products, the new screens are expected to reduce the sales of the company's current large screen TV's by $500,000 per year The company's tax rate is 40% What is the annual expected incremental operating cash flow for year 1? s2 187,009 $1,722,000 $1.887.000 882.000 $2.185.000 XYZ Corp. is considering introducing a new 90" flat screen television/monitor for the consumer market. The company's CFO has collected the following information about the proposed product. If the company goes ahead with the proposed product, it will have an effect on the company's net working capital. At the outset (ie, at t = 0). inventory will increase by $190,000 and accounts payable will increase by $70,000. At t = 4, the net working capital will be recovered after the project is completed The company already owns a section of land where the facility could be built. The land is estimated to have a market value of $2 million. The company plans to sell the land for its current market value if it is not used for this project. The screen is expected to generate sales revenue of $5,500,000 per year. Each year the operating costs (not including depreciation) are expected to be 2.525.000 - The company's interest expense each year will be $350,000 . Because the new product line is similar to another of XYZ's existing products, the new screens are expected to reduce the sales of the company's current large screen TV's by $500,000 per year The company's tax rate is 40% What is the annual expected incremental operating cash flow for year 1? s2 187,009 $1,722,000 $1.887.000 882.000 $2.185.000