Calculate the change in operating cash flow for a firm for each year using the following information:

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The asset costs $1,000,000 and is depreciated using MACRS for a 3-year asset.

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The machine will reduce operating expenses by $120,000 per year for three years.

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The tax rate is 45%.

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Working capital needs decrease by $10,000 when the machine is placed in service and are increased at the end of the life of the machine.

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The asset can be sold for $400,000 at the end of three years.