I need to calulate the net income, operating cash flows and cash flow from assets when comparing 2 cars. There are a few assumptions that are being made:

*21% corporate tax rate

*8% cost of capital/discount rate

*Depreation is an expense

*Cars are driven 40,000 miles per year

*Cars are replaced at the end of 4 years

*Both cars generate 20,000 annual revenue

*Gas price is $2.68

*Car A's price: 36,970 Highway milage: 28 miles

*Car B's price: 31,330 Highway milage: 24 miles