A firm is considering a project with the following information:

• Project will require purchase of a machine for $103,750.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1).
• Project will require immediate non-depreciable expenses of $29,227.00 TODAY (year 0).
• Project will have the following projected balance sheet values of NWC:

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

• Sales for the project will be $47,014.00 per year, with all other expenses (excluding depreciation) at 49.00% 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?

What is the projects cash flow for year 2?