Example 2 A machine costs $100,000 to purchase. In addition a further $20,000 working capital will be required at the start of the project. The project is expected to last 4 years and to have a scrap value of $20,000 at the end of its useful life. Net operating cash flows are expected to be $30,000 p.a. for the first two years and $40,000 p.a. for the following two years. All operating flows are to be assumed to occur at the ends of year. Calculate the net cash flow for each of the years in question (you are not required to discount or arrive at an investment decision). 15.10. o Type here to search F11 F12 FO FIO c F7 &