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Cyclone Industrial Corp. is evaluating the launch of a new tractor. The manufacturing machine needed for the production has an initial cost of $450,000, which

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Cyclone Industrial Corp. is evaluating the launch of a new tractor. The manufacturing machine needed for the production has an initial cost of $450,000, which will be depreciated straight- line to a book value of $50,000 over its five-year life. The new tractor is expected to generate $650,000 in annual sales, with annual production costs of $250,000. These sales and costs are before-tax figures. The marginal tax rate is 35 percent. What are the operating cash flows (OCF) over the lifetime of the new tractor? O $291,500 per year from year 1 to year 5 $208,000 per year from year 1 to year 5 O $236,000 per year from year 1 to year 5 O $288,000 per year from year 1 to year 5

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