A company is evaluating a proposed 4-year project. The depreciable cost will include the following: $300000 for the equipment $20000 for
shipping and $30000 for installation. The depreciation life is under the MACRS 3-year class with a salvage value of $45000. The inventories will rise by
$18000 and accounts payable will rise by $3000. In addition new sales are estimated to be 150000 units per year at $2.25 per unit. There is a variable
operating cost that is 60% of sales and marginal tax rate is 35%. Determine net operating cash flow for Years 1 2 and 3.