Tinney & Smyth Inc. is considering the purchase of a new batch polymer-bonding machine for producing Crazy Rubber, a children's toy that is soft, pliable but also bouncy. The machine will increase EBITDA by $ 285,000per year for the next two years. Assume that operating cash flows occur at the end of each year. The machine's purchase price is $ 330,000 and the salvage value at the end of two years is $ 52,800. The machine is classified as 3-year property. To run the Crazy Rubber production line the company will need to purchase an inventory of polydimethylsiloxane and boric acid for a total cost of $ 23,000. The MACRS depreciation rates for the first two years are 33.33 %and 44.45 %. The depreciation expense in Year 2 is $ 146,685.

The tax rate is 35 %. What are the operating cash flows for the project in Year 2?

Calculate the operating cash flows below:

revenue ?

operating expenses ?

EBITDA ?

Depreciation Expense ?

EBIT ?

Taxes ?

NOPAT ?

Add: Depreciation ?

= Operating Cash FLows ?

need to know all question marks above in order to get operating cash flows.