Clean Core Corporation (CCC) manufactures air filters. He believes that his firm will be able to produce and sell 30,000 units in each of the first two years of operation. Thereafter, as capacity increases, the firm will increase its production and distribution by 20% for the next two years. By then, it is thought that competitors would bring similar projects to the market. The 4-year project would see the firm having cost of sales of 45% of sales. Its selling and administrative expenses will be 10% of sales in the first year but will increase 1% year over year. The target selling price will be $85 per unit.

The project would require the purchase of equipment costing $2 million that would be bought and installed a year before production begins. Such equipment would be depreciated over 5 years (straight-line basis) with no residual value. The firms estimated cost of capital is 10% and its corporate tax will be at 35%.

(Round all values to the nearest whole number)

Required: Produce a table with a forecast of the cash flows for the project. [15 marks including 5 marks for formatting of the table]