The Taylor Mountain Uranium Company currently has annual cash revenues of $1.6 million and annual cash expenses of $500,000. Depreciation amounts to $200,000 per year. These figures are expected to remain constant for the foreseeable future (at least 15 years). The firm's marginal tax rate is 40 percent.

A new high-speed processing unit costing $1 million is being considered as a potential investment designed to increase the firm's output capacity. This new piece of equipment will have an estimated usable life of 9 years and a $0 estimated salvage value. If the processing unit is bought, Taylor's annual revenues are expected to increase to $1.9 million and annual expenses (exclusive of depreciation) will increase to $600,000. Annual depreciation will increase to $340,000. Assume that no increase in net working capital will be required as a result of this project.

1. Compute the project's annual net cash flows for the next 9 years, assuming that the new processing unit is purchased. Enter your answer in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your answer to the nearest whole number.

$thousand

1. Compute the net investment (NINV) for this project. Round your answer to the nearest dollar.

$