You are tasked with evaluating the purchase of a vending machine for the snack room.

The machine will be sold in year three. The Net Sale Price (taxes are already deducted) is expected to be $1200. The firm will recover net operating working capital of $333. The firm will also have operating cash flow in year three of $1400.

What are the total cash flows in year three when the asset is sold?

J's Foods is trying to estimate the cash flows in their first year of operation. They project that the firm will have sales of 100,000; operating costs of 50,000; and depreciation of 10,000. If their tax rate is 23% what would the firm's operating cash flow equal?

A firm has decided to sell equipment that they purchased five years ago for $10,000. The firm depreciated 50% of the equipments value. The firm is planning on selling the equipment for $9,200. If the tax rate is 25% what is the net sale price (after tax salvage value)?

ABC Corporation is considering an expansion that will require an investment of $929,218 in equipment. The proposed expansion will also require an additional $100,000 in inventory to support the equipment. The firm paid a consulting firm $50,000 last year for advice on the project. What are the initial cash flows?