Shado, Incorporated, is considering an investment of $440,000 in an asset with an economic...

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Accounting

Shado, Incorporated, is considering an investment of $440,000 in an asset with an
economic life of five years. The firm estimates that the nominal annual cash revenues
and expenses at the end of the first year will be $279,500 and $88,000, respectively.
Both revenues and expenses will grow thereafter at the annual inflation rate of 2
percent. The company will use the straight-line method to depreciate its asset to zero
over five years. The salvage value of the asset is estimated to be $60,000 in nominal
terms at that time. The one-time net working capital investment of $17,500 is required
immediately and will be recovered at the end of the project. The corporate tax rate is 25
percent. What is the project's total nominal cash flow from assets for each year? (A
negative amount should be indicated by a minus sign. Do not round intermediate
calculations and round your answers to the nearest whole number, e.g.,32.)
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