Crossroad Corporation is trying to decide whether to invest to automate a production line. If the...

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Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $614,000 per year. However, other cash operating expenses will increase by $147,000 per year. The equipment will cost $405,000 and is depreciable over 13 years using simplified straight line to a zero salvage value. Crossroad will invest $46,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project. Set your calculator to 4 decimal places and round to a whole number at the end. Do not enter the dollar sign. For example, if your answer is 1,000, enter it as 1000. Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $614,000 per year. However, other cash operating expenses will increase by $147,000 per year. The equipment will cost $405,000 and is depreciable over 13 years using simplified straight line to a zero salvage value. Crossroad will invest $46,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project. Set your calculator to 4 decimal places and round to a whole number at the end. Do not enter the dollar sign. For example, if your answer is 1,000, enter it as 1000.

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