1. Jurassic, Inc. (JAR) is considering a new cloning device that costs $300,000 and will have a life of 3 years. The device is salvageable for $20,000 at the end of the project, but it will be fully depreciated to zero by the straight-line method over its life. The device can produce 20 clones each year at a cost of $10,000 per unit, and JAR expects to sell them for $25,000 each. The device requires increased working capital of $40,000 that is fully recoverable. JARs required rate of return on this project is 10% and faces a 40% tax rate. Ignore inflation.

a. Calculate JARs net cash flows in each year (years = [0, 1, 2, 3]).