Do not copy paste from and answer in excel
CompU is looking at starting a major advertising campaign to further expand their business. Based on preliminary estimates, the advertising campaign will cost $110,000 and will increase revenue by $80,000 per year for the next 5 years. The increased expenses excluding depreciation will be $35,000 per year. The company is in the 40% tax bracket. The ad campaign will be capitalized and depreciated using a 5-year MACRS recovery schedule (20%, 32%, 19%, 12%, 12%, 5%).
a. Calculate the annual operating cash flows for the project.