Bay of Plenty Car Rental (BoP Car Rental) is a high-end car rental business. They are analysing whether to enter the budget car rental market. They are planning to buy 50 medium sized used cars at the price of $10,000 each. They are considering installing a GPS tracker in each car at the cost of $1000 per vehicle. BoP Car Rental will use one of its warehouses to store the vehicle. This warehouse can be subleased to an auto repair company at $40,000 per year. The $9000 annual maintenance cost on this warehouse will be paid by BoP car rental whether the warehouse is subleased or used for this project. Also, if this project is undertaken, the net working capital will increase by $30,000.

The vehicles are depreciated using a five-year MACRS class life. Each car is expected to generate $3000 a year in revenue and have an operating cost of $800. Starting seven years from now, one quarter of the fleet is expected to be replaced every year with a similar fleet of used cars. This is expected to result in net cash flow (including acquisition costs) of $70000 per year continuing indefinitely. The budget car rental business is expected to have a minimum impact on the high-end car rental business. The net cash flow of high-end car rental businesses is expected to fall by $10,000 per year. The marginal tax rate is 32%. The standard discount rate is 12%.

What is the cash flow from the asset in years 0 to 6?