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A large grocery store chain is considering paying $291,000 for new store equipment. Under MACRS depreciation system, this equipment falls into the 7-year property class.

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A large grocery store chain is considering paying $291,000 for new store equipment. Under MACRS depreciation system, this equipment falls into the 7-year property class. The grocery store chain's management estimates $127,000 in sales revenues and $23,000 in production costs every year in the future. The grocery store chain falls into a 37% tax rate bracket. Year 1 2 3 4 5 6 7 8 NLOON Property Class Three-Year Five-Year 33.33% 20.00% 44.44 32.00 14.82 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.93 8.93 4.45 Calculate the grocery store chain's Operating Cash Flow in the 4th year

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