Alsalam Corporation is contemplating the purchase of a new

equipment. The proposed equipment$$s purchase price is $$200,000,$

and an additional $ $35,000$ will be necessary to install it$.$ It will be

depreciated using a $4-$year recovery period $($Straight Line Method$).$

The salvage value is equal to $30,000.$ The change in net working

capital is $$25,000.$ Suppose the book value at the end of year $4$

equals zero. The revenue is $$400,000$ and the expenses are

$$100,000.$ The firm pays taxes at a rate of $20\%.$

Find the following:

$1.$ Initial investment

$2.$ Operating cash inflows

$3.$ Terminal cash