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 are the cash flows from the purchase or sale of the equipment in each year?