INFORMATION (6 marks) Premier Industries is to invest R400 000 in new equipment, excluding installation costs of R50 000. The equipment will be depreciated on a straight line basis over its five-year useful life. The following are the expected incremental increases in net operating profit (loss) after taxes (NOPAT) over the five-year life of the equipment:

Year

1 - R 1 110 000

2 - R112 000

3 - R120 000

4 - R124 000

5 - R130 000

REQUIRED Calculate the operating cash flows over the five years for Premier Industries.

Depreciation = ?/? =?

Year	Nopat		depreciation		operating cash flows
1		+		=
2		+		=
3		+		=
4		+		=
5		+		=