P11-2 (similar to) Question Help 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 $118,000 and will generate annual operating cash inflows of $27,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cas outflow. b. A new machine with an installed cost of $80,000. Sale of the old machine will yield $31,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $20,000 in each year of a 6-year period. At the end of year 6, liquidation of the new machine will yield $21,000 after taxes, which is $8,000 greater than the after-tax proceeds expected from the old machine had it been retained and liquidated at the end of year 6. c. An asset that requires an initial investment of $4 million and will yield annual operating cash inflows of $294,000 for each of the next 14 years. Operating cash outlays will be $23,000 for each year except year 5, when an overhaul requiring an additional cash outlay of $491,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. a. A project that requires an initial investment of $118,000 and will generate annual operating cash inflows of $27,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash outflow. (Select all the choices that apply.) A. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referred to as an annuity. B. At year 0, the initial investment will be - $118,000. For each of the years 1 thru 20, the net cash flow will be $27,000 - $5,000 = $22,000. C. At year 0, the initial investment will be - $118,000. For each of the years 1 thru 20, the net cash flow will be $27,000. OD. Year 0 1 2 3 18 19 20 Cash flow-$118,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000