• Mayco, Inc. is considering the purchase of a new machine for $60,000. The machine will reduce manufacturing costs by $5,000 annually.
• Mayco will used the modified accelerated cost recovery system (MACRS) accelerated method (5-year asset) to depreciate the machine and expects to sell the machine at the end of its 6-year operating life for $10,000.
• The firm expects to be able to reduce net working capital by $15,000 when the machine is installed, but required working capital will return to the original level when the machine is sold after six years.
• Mayco's marginal tax rate is 40%, and it uses a 12% cost of capital to evaluate projects of this nature.

The first year's operating cash flow and terminal year's cash flow excluding the last year's operating cash flow are closest to:

$7,800 OCF and -$4,000 CF.

$7,800 OCF and -$9,000 CF.

Please explain

$4,800 OCF and -$4,000 CF.