2 Parklead Leasing is a successful leasing company, specializing in the highest-quality excavation equipment.

It has a fleet of 300 vehicles, and a repair and maintenance section. It purchases a new machine for €80,000 that it plans to lease for six years, after which time it will be worthless. Parklead Leasing pays corporation tax of 23 per cent one year in arrears and the borrowing rate is 10 per cent on assets of this type. Straight line depreciation is charged on machinery. What are the cash flows to Parklead Leasing? (30 marks)