Problem:

Etonic Inc. is considering an investment of $373,000 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 $253,000 and $78,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. Etonic 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 $53,000 in nominal terms at that time. The one-time net working capital investment of $14,000 is required immediately and will be recovered at the end of the project. All corporate cash flows are subject to a 35 percent tax rate.

Required:

Question 1: What is total nominal cash flow from assets for each year?

Please show all work.