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model. Due to the availability of the new model, the market value of the old model has just dropped from $100,000 a year ago to $60,000 now. The new model has a price of $300,000 and would reduce operating expenses by $80,000 per year over the next five years. Due to its complexity, the installation cost of the new model is $25,000 while the same cost of the old model was only $5,000. The salvage value of the new model after five years is estimated to be $120,000, while the old model will be worth only $10,000 by then. The new model will allow the company to reduce its inventories by $20,000. Because the new model can share real-time data with the firm's the suppliers, it will increase accounts payable by $10,000. The changes in inventories and accounts payable will be restored to its original level at the end of the project. The firm's tax rate is 35% and the cost of capital is 12%. The allowed depreciation rate for tax purposes is 30% for press machines. AS What is the total operating cash flows of this project in year 5?

model. Due to the availability of the new model, the market value of the old model has just dropped from $100,000 a year ago to $60,000 now. The new model has a price of $300,000 and would reduce operating expenses by $80,000 per year over the next five years. Due to its complexity, the installation cost of the new model is $25,000 while the same cost of the old model was only $5,000. The salvage value of the new model after five years is estimated to be $120,000, while the old model will be worth only $10,000 by then. The new model will allow the company to reduce its inventories by $20,000. Because the new model can share real-time data with the firm's the suppliers, it will increase accounts payable by $10,000. The changes in inventories and accounts payable will be restored to its original level at the end of the project. The firm's tax rate is 35% and the cost of capital is 12%. The allowed depreciation rate for tax purposes is 30% for press machines. What is the total operating cash flows of this project in year 5

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