A large corporation subjected to 35% marginal tax is investing 200,000 in a new income producing asset that is depreciated on a MACRS 5 year schedule. The asset was paid for completely when purchased in the first quarter of the first year of operation. The expected revenue and costs by year are given below. When retired, the asset will have no value.

Year	1	2	3	4	5	6
Direct Revenue	80,000	200,000	210,000	180,000	130,000	60,000
Direct and Allocated Cost	35,000	85,000	90,000	85,000	65,000	35,000

Prepare a net cash flow statement / exhibit for all 6 years of the new asset.

a. What is the net cash flow in year 1?

b. What is the net cash flow in year 6?

c. What is the PW of the net cash flow applying an interest rate of 12.0%?