Calculating 'cash flows over the life' Arnotts Corporation (ARN) is considering whether to replace its old biscuit making machine with a new one that costs $320,000 immediately. Assume the company tax rate is 30%. The new biscuit making machine will generate yearly sales which are 15% higher when compared to the sales generated by the old machine. This new biscuit making machine has a 20-year life for tax purposes. A competitor will buy the old biscuit making machine today for $80,000. The old biscuit making machine was generating sales of $500,000 annually. Three months ago, ARN paid Nous Consulting Group $5,000 in fees for advising on the decision to purchase a new biscuit making machine. The old biscuit making machine was incurring depreciation expenses of $10,000 per year, and has 20 years left until it reaches the end of its useful life. The new biscuit making machine is able to reduce annual operating expenses by $90,000 each year from $450,000. ARN will raise $75,000 through a private placement to partly fund the machine. What are the 'cash flows over the life'? Calculating 'cash flows over the life' Arnotts Corporation (ARN) is considering whether to replace its old biscuit making machine with a new one that costs $320,000 immediately. Assume the company tax rate is 30%. The new biscuit making machine will generate yearly sales which are 15% higher when compared to the sales generated by the old machine. This new biscuit making machine has a 20-year life for tax purposes. A competitor will buy the old biscuit making machine today for $80,000. The old biscuit making machine was generating sales of $500,000 annually. Three months ago, ARN paid Nous Consulting Group $5,000 in fees for advising on the decision to purchase a new biscuit making machine. The old biscuit making machine was incurring depreciation expenses of $10,000 per year, and has 20 years left until it reaches the end of its useful life. The new biscuit making machine is able to reduce annual operating expenses by $90,000 each year from $450,000. ARN will raise $75,000 through a private placement to partly fund the machine. What are the 'cash flows over the life