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Crossroad corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor cost will decrease by $

Crossroad corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor cost will decrease by $590,000 per year. However, other cash operating expenses will increase by $113,000 per year. The equipment will cost $103,000 and is depreciable over 9 years using Simplified straight line to a zero salvage value. Crossroad will invest $46,000 in networking capital at installation. The firm has a marginal tax rate of 34%. Calculate the firms annual cash flows associated with the new project.

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