Question $2$

$1pts$

Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $$304,000$ per year. However, other cash operating expenses will increase by $$221,000$ per year. The equipment will cost $$154,000$ and is depreciable over $13$ years using simplified straight line to a zero salvage value. Crossroad will invest $$18,000$ in net working capital at installation. The firm has a marginal tax rate of $34\%.$ Calculate the firm's annual cash flows associated with the new project.

Set your calculator to $4$ decimal places and round to a whole number at the end. Do not enter the dollar sign. For example, if your answer is $1,000,$ enter it as $1000.$