Calculate the relevant cash flows (for each year) for the following capital budgeting proposal. Enter the total net cash flows for each year in the box below according to the provided format.

$90,000 initial cost for machinery;

depreciated straight-line over 4 years to a book value of $10,000;

35% marginal tax rate;

$55,000 additional annual revenues;

$25,000 additional annual cash expense;

annual expense for debt financing is $7,500.

$3,500 previously spent for engineering study;

The project requires inventory increase by $32,000 and accounts payable increase by $14,000 at the beginning of the project;

The investment in working capital occurs one time at the beginning of the project and it requires working capital return to the original level when the project ends in 4 years;

11% cost of capital;

life of the project is 4 years; and

The new equipment will be sold at the end of 4 years; expected market value of the new equipment at the end of 4 years is $15,000;

*For full credit please copy and paste any Excel tables you used to arrive at your answer.