Compute Cash flows for the initial time-period (year 0) and the future four years of the project.

The firm is planning to spend $220,000 on a machine to produce the new game. Shipping and installation costs = $20,000.

The machine is depreciated using MACRS-5-year depreciation and has an ending salvage value of $30,000.

Revenue from the new game is expected to be $600,000 in the year 1 and 5% increase every year until year 4.

Operating cost = $250,000 in year 1 and are expected to increase by 5% each year until year 4

The firm has a tax rate of 34 percent

It expects net working capital to be 10% of the next years sales.

The project lasts for four years. What are the cash flows of the project?