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OF Corporation is a retail company that sells variety of goods at low prices. The business is doing good. Therefore, the company has decided to

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OF Corporation is a retail company that sells variety of goods at low prices. The business is doing good. Therefore, the company has decided to open one more retail outlet in Baku at the end of 1999. The company thinks that a large international competitor will enter the market after five years. Therefore, it is considering this expansion as a 5 -year prospect. After five years, OF Corporation will close its operations in Baku. The company has researched the expansion and determined that the building needed could be built for $400000 and that it would cost $100000 to buy the equipment. The building would be classified as an asset with a useful life of 31 years and will be depreciated completely using the straight-line method. The equipment will be classified as a 5 -year asset and will be depreciated completely using the straight-line method. The company expects to sell the building for $350000 and the equipment for $50000 after five years. For simplicity, assume that there are no changes in working capital. The projections for sales and expenses for the new store for the next five years are as follows. Compute the cash flows for this project. Assume a tax rate of 40%

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