Shark Attack, Inc. must analyze the feasibility of a new piece of equipment that has an estimated useful life of 8 years, and the firm would like your help to make this decision. The firm plans to depreciate the equipment to a zero book value using straight line depreciation. The purchase price of the equipment is $500,000 and it will cost another 10 percent of this price to ship and properly install. In addition, to safely operate the equipment, workers will require an extensive training session that will cost nearly $8,000. The firm has estimated that to begin using the machine, it will need to invest $70,000 in inventories. At the same time accounts payable will increase by $35,000. At the end of its life, Shark Attack hopes to sell the machine to a smaller competitor for $112,000.

The company expects revenues attributable to the new machine to be $375,000 each year before tax. In addition, cash operating expenses related to the new production process are expected to reach 38 percent of sales annually. Sharks marginal tax rate is 21%.

What are the annual operating cash flows for years 1-6?