1. A regional super market chain is deciding whether to install a machine in each of its stores. Each machine costs $250,000. Projected income per machine is as follows: Figs are all in $

Year	1	2	3	4	5
Sales	250,000	300,000	300,000	250,000	250,000
Operating Expenses	200,000	200,000	200,000	200,000	200,000
Depreciation	50,000	50,000	50,000	50,000	50,000
Accounting Income	0	50,000	50,000	0	0

1. Why would the store continue to operate a machine in Year 4 and 5 if it produces no profits?
2. What are the cash flows for investing in a machine? Assume each machine is completely depreciated and has no salvage value at the end of its 5 years life.