Andover Engineering is evaluating a project that will increase sales by $2,660,000 and costs by $1,634,000. The project will initially cost $4,200,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the annual operating cash flow for this project?

		$887,420
		$819,960
		$763,290
		$688,580
		$624,350

Baker Company has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $79,500, $128,700, and $89,500 for Years 1 to 3, respectively. What is the net present value of this project?

		$2,495.08
		$3,172.54
		-$3,447.69
		$5,127.10
		-$1,389.34