Calculating cash flows at the start Passionfruit Corporation is evaluating whether to replace its old canning machine with a new one that costs $500,000 and is expected to have an economic life of five years. The company will take out a loan for $300,000 to partly furid the purchase The old machine could be sold today for $50,000, although it has been fully depreciated for tax purposes The new machine will result in a $5,000 reduction in inventory from its current level of $60,000. However, it is anticipated that accounts payable will increase by $7,000 from its current level Passionfruit Corporation spent $150,000 last year on re branding their canned goods. The marketing manager would now like the labels on the cans to be printed on glossy plastic-coated paper which requires a special printer. The company has such a printer located in its storeroom. This printer has a market value of $12.000 and a book value of 58.000. As the printer is currently unused, the marketing manager suggests there should be no charge for it to be used to print the new labels Assume the company tax rate is 30% What are the cash flows at the start? [Describe and list separately each cash flow and the corresponding amount on a new line, as in lecture and tutorial examples.) [You must show your working out otherwise you will be penalised)