$1,000,000 investment is depreciated using a seven-year MACRS class life. (assume zero salvage value)
• It requires $150,000 in additional inventory and will increase accounts payable by $50,000.
• It will generate $400,000 in revenue and $150,000 in cash expenses annually, and the tax rate is 21%.
• What is the incremental cash flow in years 0, 1, 7, and 8?