At the beginning of year one ABC and XYZ each purchased a machine that makes ice cream. ABC paid 200 and XYZ paid 100. (ABC paid more because the machine it purchased can make more ice cream per hour than the machine that XYZ purchased.) Both ABC and XYZ assume straight-line depreciation; and, each machine has a useful life of ten years. In addition to depreciation, the only other expenses relate to the cost of ingredients, which are the same for both ABC and XYZ. Specifically, the cost of ingredients needed to make one unit of ice cream is 0.75. Both ABC and XYZ charge their customers 1.00 for a unit of ice cream; and, during year one, year two, and year three, ABC (XYZ) made and sold 80 (50) units of ice cream. (Note that this is the amount that each company made and sold each year.) Assume that all sales are for cash, that each company pays cash for all of the ingredients it purchases, and that each company uses all of the ingredients it purchases.

1a.What was ABCs net cash flow for year one?

1b.What was ABCs net cash flow for year two?

1c.What was ABCs net cash flow for year three?