A Company Is Considering a New Four-Year Project with an Initial

A company is considering a new four-year project with an initial investment requirement of $72,001. The equipment belongs in a 30% CCA class and will be worthless at the end of the project. Sales
Are estimated at $136,800 with costs of $87,901. The tax rate is 34%. What is the project OCF in the
Second year?

A) $20,394
B) $28,506
C) $30,900
D) $38,516
E) $41,406