An investment project has expected unit sales of 140,000 units per year, a price of $11 per unit, and unit costs of $4.69 per unit. Depreciation will be $75,000 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 10% discount rate if the cash flows occur for 3 years?