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(Appendix 8C)Gayheart Corporation Is Considering a Capital Budgeting Project That

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(Appendix 8C) Gayheart Corporation is considering a capital budgeting project that would require investing $80, 000 in equipment with an expected life of 4 years and zero salvage value.The annual incremental sales would be $260, 000 and the annual incremental cash operating expenses would be $190, 000.The company's income tax rate is 30%.The company uses straight-line depreciation on all equipment. The total cash flow net of income taxes in year 2 is:

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