Reference no: EM132539813

Gallatin, Inc., is considering an investment of $369,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $249,000 and $74,000, 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 $49,000 in nominal terms at that time. The one-time net working capital investment of $12,000 is required immediately and will be recovered at the end of the project. All corporate cash flows are subject to a 39 percent tax rate.

Question 1: What is the project's total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.)