ABC Corp is considering a project to create new widgets. The project will last for $7$ years They

plan to sell $10,000$ widgets in year one and the number of widgets will increase by $3\%$ each

year. They will sell the widgets for $$10$ each and the cost to produce the widgets will be $$4$

per unit. Fixed costs are expected to be $$40,000.$ The project will require an initial capital

investment of $$100,000$ which will be depreciated using a $5$ year MACRS schedule$($See Table

$6\mathrm{.}3$ in the book$).$ In year $7,$ the equipment can be salvaged for $$10,000.$ Net Working Capital

will be $5\%$ of the next years projected sales. The tax rate is $21\%$ and the Discount rate is $12\%.$

What is the Operating Cash Flow in each year?