Similar to the example in class on How much should you charge for a lease?, assume:

Asset cost = $5,000 (filled in below)

Maintenance = $400 per year for time 1 4 and $600 for time 5 8 (filled in below)

Asset life = 8 years

Tax depreciation = 100% bonus depreciation taken on the year 1 tax return (filled in below)

Using the above information and the amounts filled into the table below, what is the amount for Total Cash Flow for year one in the table below? Hint in order to compute the answer to this problem, you will need to compute the amounts for the first year for Taxable Income, and Tax Benefit (at 21%).

	0	1	2	3	4	5	6	7	8
Asset cost	-5000.00
Maintenance		-400.00	-400.00	-400.00	-400.00	-600.00	-600.00	-600.00	-600.00
Tax Depreciation		-5000.00
Taxable Income		compute
Tax Benefit (at 21%)		compute
Total Cash Flow		answer