Calculating 'cash flows over the life' The following information relates to TMC Corporation (TMC): TMC operates two ski lifts. TMC is evaluating whether to purchase an additional ski lift. The ski lift costs $4,900,000. The ski lift project is expected to last for 25 years, and tickets for each lift are sold separately because each lifts ticket cannot be used on the other two lifts. Annual revenues from the new ski lift are anticipated to be $2,250,000. Last year, TMC spent $13,000 on market research to assess consumer interest in a third ski lift. TMSs CEO recommends this cost be included in this project evaluation and be spread over the ten years. The market research indicates that introducing the new ski lift will reduce annual sales associated with the existing two ski lifts by 15% of its current level for the two lifts of $4,500,000 per annum. The new ski lift will increase TMCs total annual operating costs from $1,200,000 to $1,600,000. Marketing costs for the company will remain at the current level of $180,000 per year. TMCs management suggests spreading these costs equally over the three ski lifts. ATO rules state that the new ski lift can be depreciated to zero over a 20-year life. Insurance expenses associated with the new ski lift will cause TMCs total yearly insurance expense to increase by $55,000 to $165,000. Assume the company tax rate is 30%. What are the 'cash flows over the life