answer the questions below and submit a document of your solutions. You must show your work or no credit will be given; no exceptions. Each question is worth 10 points.

Given the following, calculate the cash flows for the project.

• Initial investment $365,000
• Expected life is 5 years
• First Year Revenues: 245,000
• First Year Expenses: $70,000
• Growth for revenue and expenses: 3 percent per year
• Straight Line Depreciation over 5 years
• Salvage Value: $45,000
• One-time net working capital investment of $10,000 required at the start of the project
• This investment is recovered at the end of the project
• The tax rate is 34 percent

Answer the following:

What are the cash flows for each year?