ABC Company is trying to decide whether it should purchase or lease a new auto- mated machine to be used in the production of a new product. If purchased, the new machine would cost $100,000 and would be used for 10 years. The salvage value at the end of 10 years is estimated at $20,000. The machine would be depreciated using STRAIGHT LINE over a seven-year period to zero salvage value. The annual maintenance and operating costs would be $20,000. Annual revenues are estimated at $55,000. If the machine is leased, the company would need to pay annual lease payments of $20,700. The first lease payment and a deposit of $5,000 are due immediately. The last lease payment is paid at the beginning of Year 10. The deposit is refundable at the end of the tenth year. In addition, under a normal contract, the company must pay for all maintenance and operating costs, although the leasing company does offer a service contract that will provide annual maintenance (on leased machines only). The contract must be paid up front and costs $30,000. ABC estimates that the contract will reduce its annual maintenance and operating costs by $10,000. ABCs cost of capital is 14 percent. The tax rate is 40 percent. A. What is the initial cash flow? B. What is the terminal non-operating cash flow? C. What is the annual operating cash flow?