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  3. year revenues 1 $69,023 n 2 40,000 3 20,000 4. 10,

Year Revenues 1 $69,023 N 2 40,000 3 20,000 4. 10,000 Thereafter 0 Expenses are...

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Finance

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Year Revenues 1 $69,023 N 2 40,000 3 20,000 4. 10,000 Thereafter 0 Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $40,000 in plant and equipment that will be depreciated using the straight-line method over 5 years. The firm recently spent $2,000 on a study to estimate the revenues of the new product. The tax rate is 20%. What is the operating cash flow in year 1? Answer to nearest whole dollar amount

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