Preston Sealer Corp. is considering a new project . A new machine would need to be purchased for $ 10 million , and the machine would require modification costs of $ 500,000 , both of which will be capitalized . Training costs of $ 50,000 can be expensed upfront . Also , an additional net working capital investment in the amount of $ 2 million would also be required at the beginning of the project . The project is expected to have an six - year life , and the equipment will be depreciated on a straight - line basis to a zero book value over six years . Although the equipment will be depreciated to a zero book value , it is expected to have a salvage value of $ 1.5 million . The projects revenues minus expenses are expected to be $ 3 million per year . The cost of capital is 12 % and the firm's marginal tax rate is 21 % . Please answer the following three questions . Please click on the following link to access a blank worksheet : Click to open

Refer to the project Preston Sealer Corp. is considering undertaking . What are the expected future annual net operating cash flows of the project ? Please click on the following link to access a blank worksheet : Click to open : $ 3,350,000 $ 2,370,000 $ 2,720,000 $ 2,737.500

help please ASAP