Ermas Beauty Supply, Inc. is considering expanding the companys existing store. Ermas wants to lease the office space next door. Ermas must spend $120,000 on new equipment to expand. The equipment is expected to have a zero-salvage value and an 8-year useful life. Ermas believes that the equipment will be worthless at the end of its 8-year life. Ermas believes it will have to increase net working capital by $10,000; this amount will be recovered at the end of 8 years. Last month, Ermas spent $12,000 to conduct a survey of potential new customers in the area surrounding the current store to see if there was sufficient demand for a larger store. Ermas estimates that net revenue will increase by $100,000 per year in the new store for eight years. The direct expenses incurred to make those sales are $65,000, including rent. The lease Ermas is considering signing is for 8 years. Ermas Beauty Supply has a marginal tax rate of 40% and has a weighted average cost of capital of 10.0%.

How much does Erma need to expand her business at T=0?

Based on this information, the projects operating cash flow in each of the first seven years is$_______?

Based on this information, the projects terminal year (year 8) total cash flow is $