An international organisation considers an investment in Project Delta, which will cost R 11 million. The residual value over 5 years is zero. The project depreciates at a rate of 20% per annum. The asset will generate sales revenue amounting to R3 million in the first year and thereafter it will generate R4.5 million annually with the operating cost of R1.1 million year. The companys tax rate is 28%. The required rate of return by equity holders is 15%.

Compute the annual operating cash flows (OCF) for the asset life span.