Bi-Lo Traders is considering a project that will produce sales of $29,850 and have costs of $17,900. Taxes will be $3,200 and the depreciation expense will be $1,675. An initial cash outlay of $1,450 is required for net working capital. What is the project's operating cash flow?

Seeing Red has a new project that will require fixed assets of $901,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company has a tax rate of 35 percent. What is the depreciation tax shield for Year 3?