Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 5% per year, Marcus has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual tax-deductible expenditure of $153,000 over the next 5 years. Sales revenue, as shown in the income statement for 2020

Marcus Tube Income Statement for the Year Ended December 31, 2020

Sales revenue $19,800,000

Less: Cost of goods sold (80%) 15,840,000

Gross profits $3,960,000

Less: Operating expenses

General and administrative expense (11%) $2,178,000

Depreciation expense 510,000

Total operating expense $2,688,000

Earnings before interest and taxes $1,272,000

Less: Taxes (21%) 267,120

Net operating profit after taxes $1,004,880

,

totaled $19,800,000. If the proposed marketing campaign is not initiated, sales are expected to remain at this level in each of the next 5 years, 2021 through 2025. With the marketing campaign, sales are expected to rise to the levels shown in the table

Marcus Tube Sales Forecast

Year Sales revenue

2021 $20,300,000

2022 20,800,000

2023 21,300,000

2024 22,300,000

2025 23,300,000

for each of the next 5 years; cost of goods sold is expected to remain at 80% of sales; general and administrative expense (exclusive of any marketing campaign outlays) is expected to remain at 11% of sales; and annual depreciation expense is expected to remain at $510,000. Assuming a 21% tax rate, find the net cash flows over the next 5 years associated with the proposed marketing campaign.