An investment project has expected unit sales of 105,000 units per year, a price of $12 per unit, and unit costs of $5.05 per unit. Depreciation will be $90,000 per year and taxes are 20% of operating profit.

What is the annual expected operating cash flow from the investment?

If the investment costs $1,000,000, what is its net present value at a 15% discount rate if the cash flows occur for 4 years?