Consider a project that has the following features: . Requires an investment cash flow of $50,000 for equipment and installation. . The assets are classified as 3-year MACRS assets. . There is no expected salvage value for the assets, but the company will have to pay $3,000 at the end of the 3rd year to dispose of the assets to meet local and federal environmental mitigation requirements. The disposal costs are a tax deductible expense. . Inventory needs will be reduced by $5,000 for the duration of the project. . The project will increase revenues by $25,000 each year, but will also increase operating expenses by $12,000. . The marginal tax rate is 35 percent. Complete the following table: Initial Year 1 Year 2 Year 3 Cost of equipment Less Disposal costs and any related taxes from disposal Less Change in working capital Equals Nonoperating cash flows Change in revenues Less Change in operating expenses Less Change in depreciation Equals Change in taxable income Less Change in taxes Equals Change in income after tax Plus Change in depreciation Equals Change in operating cash flow Net cash flow