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A new project creates the following: $300,000 per year in Revenue $70,000 of Variable Cash Costs per year (these are not depreciated) $60,000 of Fixed

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A new project creates the following: $300,000 per year in Revenue $70,000 of Variable Cash Costs per year (these are not depreciated) $60,000 of Fixed Costs per year 40% tax rate $200,000 in initial equipment costs which will be depreciated using 5-year MACRS 5-year MACRS table Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% What is the Operating Cash Flow in Year 1 and 2? Show your work here. You will not receive credit without showing your work. Round to two decimal places where applicable. Highlight your answers

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