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Project Y requires a $319,500 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1)

Note: Use appropriate factor(s) from the tables provided.

Annual Amounts	Project Y
Sales of new product	$ 395,000
Expenses
Materials, labor, and overhead (except depreciation)	176,960
DepreciationMachinery	79,875
Selling, general, and administrative expenses	28,000
Income	$ 110,165

Required:

1. Compute Project Ys annual net cash flows.

Annual amounts	Income	Cash Flow
Sales of new product	$395,000
Expenses
Materials, labor, and overhead (except depreciation)	176,960
DepreciationMachinery	79,875
Selling, general, and administrative expenses	28,000
Income	$110,165
Net cash flow		$0