Reference no: EM132502790

For this assignment, consider the following financial projections of BlueVal and complete the required calculations and tasks.

Accounting Profits                                                         Year 2011                               Year 2015

Sales                                                                  50,000                             50,000

Costs except depreciación                                    (25,000)                            (25,000)

Depreciación                                                      (15,000)                            (5,000)

Net operating income or cash flow                        10,000                            20,000

Taxes based on operating income (30 percent) (3,000)                               (6,000)

Net income                                                        7,000                          14,000

Using the above financial information, complete the following:

Question 1: Determine the incremental cash flows for each year.  Explain your calculations. Support your statements with appropriate examples and scholarly references.