Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by \$523,000 per year. However , other cash operating expenses will increase by \$140,000 per year. The equipment will cost $196,000 and is depreciable over 7 years using simplified straight line to a zero salvage value . Crossroad will invest $ 9,000 in net working capital at installation . The firm has a marginal tax rate of 34%Calculate the rm^ prime s annual cash flows associated with the new project .

Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $523,000 per year. However, other cash operating expenses will increase by $140,000 per year. The equipment will cost $196,000 and is depreciable over 7 years using simplified straight line to a zero salvage value. Crossroad will invest $9,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project. Set your calculator to 4 decimal places and round to a whole number at the end. Do not enter the dollar sign. For example, if your answer is 1,000, enter it as 1000