Question $12(33$ points$)$

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Jack in Pleasantville, NY is consi$$ering expanding his ice cream business and has gathered the following data: The special truck he needs costs $$90,000.$ He can depreciate the truck on a straight line basis over five years. At the end of five years, the project will terminate and he expects to sell the truck for $$23,000.$ Jack expects annual revenues to be $$120,000$ and operating expenses to be $$80,000$ per year. The business will require an initial investment in working capital of $$9,000$ and thereafter working capital requirements are expected to remain constant.

a$.$ If the marginal tax rate for this business is $40\%,$ calculate the operating cash flows for the project in each of years $1-5.(10$ points$)$