Computation of After-Tax Cash Flows Postman Company is considering two independent projects. One project involves a new product line, and the other involves the acquisition of forklifts for the Materials Handling Department. The projected annual operating revenues and expenses are as follows: Project I (investment in a new product) Revenues $270,000 Cash expenses (135,000) Depreciation (45,000) Income before income taxes $90,000 Income taxes 22,500 Net income $67,500 Project II (Acquisition of Two Forklifts) Cash expenses Depreciation Required: $90,000 90,000 Compute the after-tax cash flows of each project. The tax rate is 25 percent and includes federal and state assessments. Enter cash outflows as negative amounts and cash inflows as positive amounts. Project I Project II Cash Flows