In the spring of 2015, Jemison Electric was consider- ing an investment in a new distribution center. Jemisons CFO anticipates additional

earnings before interest and taxes (EBIT) of $100,000 for the first year of operation of the center, and, over the next five years, the firm estimates that this amount will grow at a rate of 5% per year. The distribution center will require an initial investment of $400,000 that will be depreciated over a five-year period toward a zero salvage value using straight-line depreciation of $80,000 per year. Jemisons CFO estimates that the distribution center will need operating net working capital equal to 20% of EBIT to support operation. Assuming the firm faces a 30% tax rate, calculate the projects annual project free cash

flows (FCFs) for each of the next five years where the salvage value of operating network- ing capital and fixed assets is assumed to equal their book values, respectively.