Question $10$

Your firm is considering a new project that would require capital

expenditures of $$50,000,$ along with an investment in NWC of

$$7,250.$ Sales in year $1$ would be $$100,000.$ Expenses in year $1,$

not including depreciation and taxes, would be $$60,000.$

Depreciation would be $$14,213$ per year. Your firm's tax rate is

$31\%.$ What would operating cash flows for the project be in year

$1?$