DSSS Corporation is considering a new project to manufacture widgets. The cost of the

manufacturing equipment is $125,000. The cost of shipping and installation is an additional $10,000.

The asset will fall into the 3-year MACRS class. The year 1- 4 MACRS percentages are 33.33%,

44.45%, 14.81%, and 7.41%, respectively. Sales are expected to be $225,000 per year. Cost of

goods sold will be 60% of sales. The project will require an increase in net working capital of

$10,000. At the end of three years, DSSS plans on ending the project and selling the manufacturing

equipment for $25,000. The marginal tax rate is 40% and DSSS Corporations appropriate discount

rate is 15%.

What is the operating cash flow for year 1, 2 and 3 ?