1. Blaze Scooters is considering expanding into a new college town and has the following operating data: Initial Investment in scooters (year 0): $109282 Cost of securing permits (assume that permit cost is a tax-deductible expense in year 1): $11669 Anticipated Revenue: $156590 for years 1-5. Depreciation of scooters - straight line down to 0 over 5 years. Operating expenses (not including Depreciation): $82824 per year. Tax Rate: 18%. Net Working Capital, consisting of cash, spare parts inventory, accounts receivable, and accounts payable: $30,000. Blaze expects to be able to recoup 100% of Net Working if they shut down. Assume that investment in working capital occurs in year 0 at the start of the project. Scrap value of scooters at the end of 5 years: $20,000. (remember that any capital gains when selling are taxable) Assume that Blaze makes the necessary investments, operates for 5 years, and then shuts down, selling the scooters for scrap and recouping Net Working Capital. What are their expected after-tax cash flows for year 2 rounded to the nearest cent (.01)?

2. Blaze Scooters is considering expanding into a new college town and has the following operating data: Initial Investment in scooters (year 0): $106156 Cost of securing permits (assume that permit cost is a tax-deductible expense in year 1): $12901 Anticipated Revenue: $168528 for years 1-5. Depreciation of scooters - straight line down to 0 over 5 years. Operating expenses (not including Depreciation): $76735 per year. Tax Rate: 23%. Net Working Capital, consisting of cash, spare parts inventory, accounts receivable, and accounts payable: $26062. Blaze expects to be able to recoup 100% of Net Working if they shut down. Assume that investment in working capital occurs in year 0 at the start of the project. Scrap value of scooters at the end of 5 years: $23148. (remember that any capital gains when selling are taxable) Assume that Blaze makes the necessary investments, operates for 5 years, and then shuts down, selling the scooters for scrap and recouping Net Working Capital. What are their expected after-tax cash flows for year 5 rounded to the nearest cent (.01)?