A project has an estimated investment in equipment of $375,000. Transportation and installation costs are $50,000. The investment will be depreciated using the MACRS factors provided below. The equipment has gross salvage value at the end of 5 years of $120,000. The project requires $45,000 in net working capital initially but it is expected to reverse in year 5. It will generate 75,000 per year in unit sales in Year 1 which is expected to increase by 3,000 units each year thereafter. The expected sale price is $2.87 per unit. The fixed costs are estimated at $28,000 in Year 1 and is expected to increase by 6% each year thereafter. Variable costs are estimated to be $0.92 per unit. The firm's tax rate is 34%. Use the layout below to determine the project's cash flow.

MACRS		14.29%	24.49%	17.49%	12.49%	8.93%
Year	0	1	2	3	4	5
Unit Sales
Revenue
Variable Costs
Gross Profit
Fixed Costs
Depreciation
EBIT (Taxable Income)
Taxes
Net Income
Operating Cash Flow
Net Working Capital
Net Capital Spending
Net Salvage Value
Project Cash Flow