A firm is considering a project with the following information:

• Project will require purchase of a machine for $92,101.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1).
• Project will require immediate non-depreciable expenses of $25,021.00 TODAY (year 0).
• Project will have the following projected balance sheet values of NWC:

YEAR	0	1	2
NWC Level	$4,000	9.00% of sales	8.00% of sales

• Sales for the project will be $54,556.00 per year, with all other expenses (excluding depreciation) at 55.00% of sales.
• The tax rate for the firm is 34.00%, while the cost of capital is 10.00%

*assume project goes beyond two years

-What is the project cash flow for year 0?

-What is the projects cash flow for year 1?