Investment in equipment is expected to generate sales of $25,000 and costs of $7,000 at the end of each of the next three years. The initial cost of the equipment is $4,000. The equipment falls into the three-year MACRS class (depreciation percentages for years 1 4 are 33.33%, 44.45%, 14.81%, and 7.41% respectively) and will have a salvage value of $800 at the end of the third year. Additionally, $1,500 of net working capital will be required when the equipment is purchased. The applicable tax rate is 20 percent.

1. What is the equipments cash flow from assets (CFFA) in year zero (t = 0)?
2. What is the equipments cash flow from assets (CFFA) in year one (t = 1)?