Net cash flow and timeline depiction:

For each of the following projects, determine the net cash flows, and depict the cash flows on a time line.

A. A project that requires an initial investment of $119,000 and will generate annual operating cash inflows of $21,000 for the next 18 years. In each of the 18 years, maintenance of the project will require a $4,700 cash outflow.

B. A new machine with an installed cost of $83,000. Sale of the old machine will yield $30,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $22,000 in each year of a 6 year period. At the end of year 6, liquidation of the new machine will yield $25,000 after taxes, which is $8,000 greater that the after-tax proceeds expected from the old machine had it been retained and liquidates at the end of year 6.

C. An asset that requires an initial investment of $3 million and will yield annual operating cash inflows of $290,000 for each of the next 14 years. Operating cash outlays will be $15,000 for each except year 5, when an overhaul requiring an additional cash outlay of $501,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero.