Pelican cove corporation is trying to decide whether to invest in equipment to manufacture a new product. if the investment project is accepted, sales revenue will increase by $65,000 per year and materials costs will increase by $18,000 per year. the equipment will cost $140,000 and is depreciable over 10 years using simplified straight line. the firm has a marginal tax rate of 34%. calculate the firm's annual cash flows resulting from the new project.

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is: