Titi & Ti, an electronic trading platform, wants to purchase a new advanced infraestructure with powerful computers. Listed below is the economic data for the new investment:

VOU A W N - Depreciable Capital - year 0 500,000 Salvage Value (FMV) (at the end of project life) 90,000 Non-depreciable Capital - year 0 Non-depreciable Capital (at the end of project life) CA CA CA CA EA 95,000 180,000 Expected Revenue ($ / yr.) 2,000,000 O&M Cost ($ / yr. 250,000 Useful life (years) 2 8 Working Capital - year 0 $ 200,000 9 Working Capital - (at the end of the project life) $ 200,000 10 Loan Proceeds - year 0 $ 700,000 11 Interest on Loan - per year 8% 12 Loan Period - years 2 13 Tax rate - per year 25% 14 ITC - year 90,000 15 ITC - year 2 $ 120,000 16 MARR per year 25% This system qualifies as a special 2-year MACRS Depreciation (with factors 0.75 and 0.25). Assume that the working capital is returned in year 2. Assume that the company has income from other projects and this system is sold at the end of year 2. e) Calculate the Net Capital Cash Flow. [6 points] 13 Principal Repayment 14a Depreciable Capital 14b Non-depreciable capital 140 Loan Proceeds 15 Capital Gains/Losses 16 Working Capital 17 Net Capital Cash Flow