Calculating 'cash flows over the life'

Raging Bull Corporation (RBC) is evaluating whether to purchase a new Lamborghini car to provide supercar experiences for its customers.

The new Lamborghini car costs $500,000 immediately, and is expected to be used for 12-years. The new Lamborghini will generate sales of $600,000 per annum.

The new Lamborghini is anticipated to have fuel costs of $20,000 per year. Advertising costs associated with the new Lamborghini will cause RBCs total yearly advertising expense to increase by $30,000 to $145,000.

Excluding fuel and advertising costs, the new Lamborghini car will increase RBCs total operating costs from $900,000 to $1,360,000 per annum.

The CFO of RBC wants the market research costs of $2,500 incurred over the last seven months to be split evenly during the Lamborghinis useful life.

The tax office rules state that the Lamborghini can be depreciated to zero over a 16-year life. Assume the company tax rate is 30%.

The main office costs for RBC will remain at the current level of $150,000 per year.

What are the 'cash flows over the life'?

[Describe and list separately each cash flow and the corresponding amount on a new line, as in lecture and tutorial examples.]

[Provide the Cash flows over the life for one year only because the cash flows are the same during each year of the project's life].

[Where applicable, show as much working out as possible,