$10$

Problem $6-21$ Calculating Nominal Cash Flow

Shado, Incorporated, is considering an Investment of $$442,000$ in an asset with an

economic life of five years. The firm estimates that the nominal annual cash revenues

and expenses at the end of the first year will be $$281,300$ and $$88,400,$ respectlvely.

Both revenues and expenses will grow thereafter at the annual inflation rate of $4$

percent. The company will use the straight$-$line method to depreclate its asset to zero

over five years. The salvage value of the asset is estimated to be $$62,000$ in nominal

terms at that time. The one$-$time net working capital Investment of $$18,500$ is required

Immedlately and will be recovered at the end of the project. The corporate tax rate is $22$

percent. What is the project's total nominal cash flow from assets for each year? $($A

negatlve amount should be Indlcated by a minus sign. Do not round Intermedlate

calculations and round your answers to the nearest whole number, e$.$g$.,32.)$