Calculating 'cash flows at the end' Corona Corporation (COR) is a beer manufacturer. In Year zero, COR will purchase new bottling equipment for $200,000, which it is expects to use for ten years. Assume the company tax rate is 30% In Year zero, the new bottling equipment will require accounts payable to increase by $15,000 from the existing figure of $55,000, and inventory to decrease by $10,000. In Year 10, COR will pay a dividend to its shareholders which totals $25,000. In internal reports, COR will apply an effective life of 20 years to the new bottling equipment. The new bottling equipment purchased by COR has a useful life of 15 years (as according to the tax office). In Year zero, COR agrees to sell the new bottling equipment in ten years' time to a competitor (i.e., Budweiser Corporation) for $100,000. What are the 'cash flows at the end'? [Describe and list separately each cash flow and the corresponding amount on a new line, as in lecture and tutorial examples.] [Where applicable, show as much working out as possible, otherwise you may be penalised]. Calculating 'cash flows at the end' Corona Corporation (COR) is a beer manufacturer. In Year zero, COR will purchase new bottling equipment for $200,000, which it is expects to use for ten years. Assume the company tax rate is 30% In Year zero, the new bottling equipment will require accounts payable to increase by $15,000 from the existing figure of $55,000, and inventory to decrease by $10,000. In Year 10, COR will pay a dividend to its shareholders which totals $25,000. In internal reports, COR will apply an effective life of 20 years to the new bottling equipment. The new bottling equipment purchased by COR has a useful life of 15 years (as according to the tax office). In Year zero, COR agrees to sell the new bottling equipment in ten years' time to a competitor (i.e., Budweiser Corporation) for $100,000. What are the 'cash flows at the end'? [Describe and list separately each cash flow and the corresponding amount on a new line, as in lecture and tutorial examples.] [Where applicable, show as much working out as possible, otherwise you may be penalised]