Your company is thinking about acquiring another corporation. You have two choices; the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data:

Corporation A: 1) Revenues = 100K in year one, increasing by 10% each year. 2) Expenses = 20K in year one, increasing by 15% each year. 3) Depreciation Expense = 5K each year. 4) Tax Rate = 25% 5) Discount Rate = 10%

Corporation B: 1) Revenues = 150K in year one, increasing by 8% each year. 2) Expenses = 60K in year one, increasing by 10% each year. 3) Depreciation Expense = 10K each year. 4) Tax Rate = 25% 5) Discount Rate = 11%

For each corporation (A & B), forecast the income statements for the next five years. Use the income statements to determine the Operating Cash Flow (OCF) for the next five years.

Please show all steps and work clearly. Thank You.