Estimate the annual net income and annual net cash flows from the proposed PMS project. Keep in mind that, you should use only incremental revenues and cost saving from the proposed project, not all forecasted sales revenue and labor cost. You should also include annual recurring costs from this project. The Jones' Hotels uses straight-line depreciation method for depreciating fixed assets, and no salvage value is expected from the disposition of the PMS at the end of its economic life of 10-years. Company's average tax rate is 21%. Use the following table to calculate annual net incomes and annual net cash flows from the proposed PMS project.

Fill out the chart.