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Relevant cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial investment of $124,000 and will generate annual operating cash inflows of $20,000 for the next 18 years. In each of the 18 years, maintenance of the project will require a $4,700 cash outflow. b. A new machine with an installed cost of $90,000. Sale of the old machine will yield $25,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $18,000 in each year of a 6-year period. At the end of year 6, liquidation of the new machine will yield $23,000 after taxes, which is $11,000 greater than the after-tax proceeds expected from the old machine had it been retained and liquidated at the end of year 6. c. An asset that requires an initial investment of $2 million and will yield annual operating cash inflows of $310,000 for each of the next 14 years. Operating cash outlays will be $20,000 for each year except year 5, when an overhaul requiring an additional cash outlay of $509,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. a. A project that requires an initial investment of $124,000 and will generate annual operating cash inflows of $20,000 for the next 18 years. In each of the 18 years, maintenance of the project will require a $4,700 cash outflow. (Select all the choices that apply.) A. At year 0, the initial investment will be - $124,000. For each of the years 1 thru 18, the net cash flow will be $20,000 - $4,700 = $15,300. B. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referred to as an annuity. C. At year 0, the initial investment will be - $124,000. For each of the years 1 thru 18, the net cash flow will be $20,000. D. Year 0 1 2 3 16 17 18 Cash flow - $124,000 $15,300 $15,300 $15,300 $15,300 $15,300 $15,300

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