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Part $1$

Relevant cash flows for a marketing campaign$$Marcus$$ Tube, a manufacturer of$$ high$-$quality aluminum$$ tubing, has maintained stable sales and profits over the past $10$ years. Although the market for aluminum tubing has been expanding by$3\%$

per$$ year, Marcus has been unsuccessful in sharing this growth. To increase its$$ sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual$$ tax$-$deductible expenditure of $ $153$ comma $000$

over the next $5$ years. Sales$$ revenue, as shown in the income statement for $2020$

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$,$

totaled $ $19$ comma $500$ comma $000$

$.$

If the proposed marketing campaign is not$$ initiated, sales are expected to remain at this level in each of the next $5$ years, $2021$

through $2025$

$.$

With the marketing$$ campaign, sales are expected to rise to the levels shown in the table

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for each of the next $5$ years; cost of goods sold is expected to remain at $78\%$

of$$ sales; general and administrative expense$($exclusive of any marketing campaign$$ outlays$)$ is expected to remain at $11\%$

of$$ sales; and annual depreciation expense is expected to remain at $ $520$ comma $000$

$.$

Assuming a $21\%$

tax$$ rate, find the net cash flows