ABC Corporation has hired you to evaluate a new FOUR year project for

the firm. The project will require the purchase of a $$825,300\mathrm{.}00$ work cell.

Further, it will cost the firm $$58,800\mathrm{.}00$ to get the work cell delivered and

installed. The work cell will be straight$-$line depreciated to zero with a $20-$

year useful life. The project will require new employees to be trained at a

cost of $$65,200\mathrm{.}00.$ The project will also use a piece of equipment the

firm already owns. The equipment has been fully depreciated, but has a

market value of $$6,300\mathrm{.}00.$ Finally, the firm will invest $$11,300\mathrm{.}00$ in net

working capital to ensure the project has sufficient resources to be

successful.

The project will generate annual sales of $$920,000\mathrm{.}00$ with expenses

estimated at $38\mathrm{.}00\%$ of sales. Net working capital will be held constant

throughout the project. The tax rate is $37\mathrm{.}00\%.$

The work cell is estimated to have a market value of $$486,000\mathrm{.}00$ at the

end of the fourth year. The firm expects to reclaim $82\mathrm{.}00\%$ of the final

NWC position.

The cost of capital is $12\mathrm{.}00\%.$

What is the yearly operating cash flow for the project?