A machine costs you $20,000 and you are expecting to make $5,000 of cash flow a year by selling the products manufactured by using this machine. If the discount rate is 12% and the machine lasts for 7 years, what is its equivalent annual annuity? Hint: you first need to find the NPV of the project. Be careful with the sign of your cash flow. $618. $403. $15,000. $2,820. $574. A project generates $40,000 revenues, expenses (excluding depreciation) of $20,000, and depreciation charges of $5,000 in a year. The firm's tax rate is 25%. What is the operating cash flow? $15,000. $20,000. $11,250. $16,250. $6,250