Marks Company wants to move into the market research business. They think it will be a two-year project and will require the purchase of a $200,000 piece of equipment which will cost another $10,000 to install and modify. The equipment has a 3-year MACRS life and can be salvaged at the end of two years for $40,000. They have projected revenues from the business of $200,000 and operating costs (not including depreciation) of $80,000 per year. Assume a cost of capital of 9% and a tax rate of 25% and also assume that net operating working capital increases by $10,000 in year 0. A .

Can you calculate what Marks company's cash flows for the project for years 1-2 and include net salvage value would be?