You are considering expanding the product line of one of your businesses. The new product you are considering to produce is a revolutionary new workout machine. After an analysis, you feel you can sell 75,000 of these machines per year. After five years, the product will shut down as you may no longer have a market need. The product will sell for $8.00 a unit with variable costs of $3.50 for each produced. Annual fixed costs associated with production will be $80,000. In addition, a $150,000 initial outlay is needed for the purchasing of new equipment. The equipment will be depreciated via straight line method down to zero over five years. Lastly the project will require a $25,000 one-time initial investment in net working capital for inventory purposes Assuming your company is in the 40% tax bracket, what does the free cash flow diagram for years 1-5 look like?

Year	0	1	2	3	4	5
Cash Flow	$175,000	166,500	166,500	166,500	166,500	191,500

Year	0	1	2	3	4	5
Cash Flow	$150,000	166,500	166,500	166,500	166,500	166,500

Year	0	1	2	3	4	5
Cash Flow	$175,000	166,500	166,500	166,500	166,500	166,500

Year	0	1	2	3	4	5
Cash Flow	$150,000	166,500	166,500	166,500	166,500	191,500