1. A firm is considering purchasing a new asset. Use the information in the chart below to find the net cash outlay for this asset. 0 125,000 0 Cost of New Asset Installation Costs Old Asset Book Value Proceeds on Sale Initial Purchase Price Decrease in Working Capital 0 32,000 100,000 7.000 2. The firm is projecting the cash flows in the chart below for the asset above. Find the marginal operating cash flows for this asset. 0 2 3 1 138,000 9.00% 9.00% Year Revenues Revenue Inflation Rate Expenses Expense Inflation Rate Useful life Operating Cash Flows, Old Asset 44,000 5.00% 5.00% 3 47,000 47,000 47,000 PROBLEM 2 0 1 2 3 Inputs Revenues Revenue Inflation Rate Expenses Expense Inflation Rate Cost of New Asset Useful life Operating Cash Flows, Old Asset Outputs Revenues Operating Expenses Depreciation Expense Earnings Before Taxes Taxes Net Income Depreciation Expense Operating Cash Flow Operating Cash Flow, Old Asset Net Operating Cash Flows