(Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,200,000 for the next 3 years. Cash expenses including both fixed and variable costs will be $900,000 per year, bonus depreciation will be $1,300,000 in year 1, and the firm has enough income in other areas to offset any tax losses that might occur in year 1. In addition, let's assume that the firm's marginal tax rate is 25 percent. Calculate the operating cash flows in years 1 through 3. What are the firm's operating cash flows in year 1? (Round to the nearest dollar.) (Risk-adjusted NPV) The Hokie Corporation is considering two mutually exclusive projects. Both require an initial outlay of $14,000 and will operate for 8 years. Project A will produce expected cash flows of $7,000 per year for years 1 through 8, whereas project B will produce expected cash flows of $8,000 per year for years 1 through 8. Because project B is the riskier of the two projects, the management of Hokie Corporation has decided to apply a required rate of return of 17 percent to its evaluation but only a required rate of return 12 percent to project A. Determine each project's risk-adjusted net present value. What is the risk-adjusted NPV of project A? (Round to the nearest cent.)