A company is considering an investment project that requires paying $200,000 for production equipment. This equipment falls into the 3-year


A company is considering an investment project that requires paying $200,000 for production equipment. This equipment falls into the 3-year property class under MACRS. The project is estimated to generate $70,000 in annual sales revenues and require spending $20,000 annually to cover production costs. The company faces a 35% tax rate.
Property Class
Year Three-Year Five-Year Seven-Year
1 33.33% 20.00% 14.29
2 44.44 32.00 24.49
3 14.82 19.20 17.49
4 7.41 11.52 12.49
5 11.52 8.93
6 5.76 8.93
7 8.93
8 4.45
9 8
Based on this information, answer the following question. (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10,000.23.) The Operating Cash Flow in the 5th year equals:.


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