The 3 year class MACRS depreciation rates are(Yr1 = .3333; Yr2 = .4445; Yr3 = .1481;

Yr4 = .0741).

Jones and Co., Inc. is considering investment in a project which will involve purchase of a $4,500,0003 year class fixed (depreciable) asset; and an upfront investment in NWC of $500,000.The firm expects to be able to dispose of the asset at the end of Year 3 for $550,000; when it also expects to recover of its upfront NWC investment.The project supported by the fixed assets is expected to generate annual Sales of $3,200,000, with associated costs of

$ 1,025,000.Jones' tax rate is 40%.MACRS depreciation deductions will be taken.

What is the Yr 1 project Net (Total) Cash Flow? (2)

What is the Yr 3 project Net (Total) Cash Flow? (1)