7. Phoebes Adirondack Chair Company has been making high quality, cedar chairs for years. Each chair costs $300 to make and sells for $500. Phoebe is (reluctantly) considering adding a resin chair to her line up. These chairs would cost only $100 to make and would sell for $150. She estimates she will sell 200 of the resin chairs per year. The new chair would add nothing to fixed costs or depreciation. She also estimates that sales of her original chair would fall by 30. The tax rate is 21%. What is the correct annual cash flow to use for the new chair?