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Sean's Tutoring is considering offering a new product. This product requires an investment of $102,000...

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Accounting

Sean's Tutoring is considering offering a new product. This product requires an investment of $102,000 in new fixed assets and $31,100 in net working capital, all of which is recoverable at the end of the project. The fixed assets will be depreciated straight-line to zero over the 3-year life of the project. The company spent $10,000 to hire a consult to estimate the potential costs and revenue associated with this project. The consultant projects the product will produce annual sales of $114,600 with annual costs of $74,600. At the end of the project, the company should be able to sell the fixed assets for $16,600.

What is the project's operating cash flow?

OCF = (please don't round answers)

- g = 3.08%

- r equity = 8.31%

- r debt = 4.49%

- wacc = 7.16%

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