1. Joe Hotdogs Inc. is looking at a new sausage system that has an installed cost of $348,950. This equipment will be depreciated straight-line to zero over the project's 6-year life, at the end of which the sausage system can be scrapped for $50,000. The new system will INCREASE the firm's EBIT by $134,400 per year and require an inital investment in net working capital of $19,500. All of the net working capital will be recovered at the end of the project. The tax rate is 35%. Calculate the incremental annunal cash flows (CFFA) for this project in the table below.

	0	1	2	3	4	5	6
Inital Investment
Change in Net WC
Net proceeds: Asset Sale
Incremental EBIT
Depreciation
Incremental Taxes
Incremental OCF
Incremental CFFA