#10. A firm is considering a capital expenditure project that will involve purchasing and installing new equipment. The equipment cost will be $30,000 with an additional $3,000 for delivery and Installation of the equipment is expected to be $5,000. The equipment has an expected life of 5yrs and an estimated salvage value of $5,000. The proposed project will require an additional working capital investment of $8,000. Revenues for the project are forcasted to be $20,000 per year and cash expenses are expected to be $10,000 per year. The firm has a 35% marginal tax rate and has a 10% weighted average cost of capital. Calculate the annual net cash flows from this project.