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 4% 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 web sites and exhibiting products at all

major regional and national trade shows. The campaign is expected to require an

annual tax-deductible expenditure of $152,000 over the next 5 years. Sales revenue,

as shown in the accompanying income statement for 2018,

Marcus Tube Income Statement for
the Year Ended December 31, 2018
Sales revenue	$20,500,000
Less: Cost of goods sold (75%)	15,375,000
Gross profits	$5,125,000
Less: Operating expenses
General and administrative expense (10%)	$2,050,000
Depreciation expense	480,000
Total operating expense	$2,530,000
Earnings before interest and taxes	$2,595,000
Less: Taxes (40%)	1,038,000
Net operating profit after taxes	$1,557,000

totaled $20,500,000.

If the proposed marketing campaign is not initiated, sales are expected to remain at

this level in each of the next 5 years, 2019 through 2023. With the marketing campaign, sales are expected to rise to the levels shown in the accompanying table

Marcus Tube Sales Forecast
Year	Sales revenue
2019	$21,000,000
2020	21,500,000
2021	22,000,000
2022	23,000,000
2023	24,000,000

for each of the next 5 years; cost of goods sold is expected to remain at 75% of

sales; general and administrative expense (exclusive of any marketing campaign outlays)

is expected to remain at 10% of sales; and annual depreciation expense is expected

to remain at $480,000. Assuming a 40% tax rate, find the relevant cash

flows over the next 5 years associated with the proposed marketing campaign.

The annual operating cash flow without the marketing campaign will be $__________________