Year 0 1 2 3

$ $ $
259,000.0 269,360.0 280,134.4
Cash revenues 0 0 0
-$ -$ -$
Cash expenses 84,000.00 87,360.00 90,854.40
Annual depreciation ($379,000/5 -$ -$ -$
years) 75,800.00 75,800.00 75,800.00
$ $
$ 106,200.0 113,480.0
Net income before taxes 99,200.00 0 0
-$ -$ -$
Taxes @ 35% 34,720.00 37,170.00 39,718.00
$ $ $
Net income 64,480.00 69,030.00 73,762.00
$ $ $
Depreciation 75,800.00 75,800.00 75,800.00
$ $ $
140,280.0 144,830.0 149,562.0
Operating cash flows (A) 0 0 0

-$
Asset purchased 379,000.00
-$
Net working capital investment 17,000.00
Release of Net working capital
investment
Proceeds from sale of asset
{$59,000*(1-0.35)}
-$
Non-Operating cash flows (B) 396,000.00 $ 0.00 $ 0.00 $ 0.00

$ $ $
-$ 140,280.0 144,830.0 149,562.0
Total cash flows from asset(A+B) 396,000.00 0 0 0