Answer:
$178,000
Step-by-step explanation:
The calculation of X and Y is shown below:-
Before that we need to do the following calculations
[tex]Depreciation\ in \ 1\ year = 45\%\times Initial\ investment[/tex]
[tex]= 0.45\times\$400,000[/tex]
= $180,000
[tex]Depreciation\ in \ 4\ year = 6\%\times Initial\ investment[/tex]
[tex]= 0.06\times\$400,000[/tex]
= $24,000
Now, Operating cash flow of X in Year 1
[tex]X = (Revenue - Cost)\times (1 - Tax \ rate) + Depreciation\times tax \ rate[/tex]
[tex]X = (\$628,000 - \$552,000)\times (1 - 0.50) + \$180,000\times 0.50[/tex]
= $38,000 + $90,000
= $128,000
and Operating cash flow of Y in Year 4
[tex]Y = (Revenue - Cost)\times (1 - Tax \ rate) + Depreciation\times tax \ rate[/tex]
[tex]Y = (\$628,000 - \$552,000)\times (1 - 0.50) + \$24,000\times 0.50[/tex]
= $38,000 + $12,000
= $50,000
[tex]X + Y = Operating\ cash\ flow\ for\ the\ year\ 1 + Operating\ cash\ flow\ for\ the\ year\ 2[/tex]
= $128,000 + $50,000
= $178,000
hence, the X + Y is $178,000