QUESTION $2$

Blaze Scooters is considering expanding into a new college town and has the following operating data:

Initial Investment in scooters $($year $0)$: $$102617$

Cost of securing permits $($assume that permit cost is a tax$-$deductible expense in year $1)$: $$8846$

Anticipated Revenue: $$156827$ for years $1-5.$

Depreciation of scooters $-$ straight line down to $0$ over $5$ years.

Operating expenses $($not including Depreciation$)$: $$75194$ per year.

Tax Rate: $18\%.$

Assume that investment in working capital occurs in year $0$ at the start of the project.

Scrap value of scooters at the end of $5$ years: $$22321.($remember that any capital gains when selling are taxable$)$

after$-$tax cash flows for vear $5$ rounded to the nearest cent $(\mathrm{.}01)?$