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

■ The equipment costs $200,000 and is depreciated using MACRS over five years.

■ The equipment will reduce operating expenses by $25,000 per year for five years.

■ The tax rate is 30%.

■ Working capital needs increase by $10,000 when the machine is placed in service and are reduced at the end of the life of the machine.
■ There is no salvage value at the end of five years.