Q3 ABC Corporation purchased a machine 5 years ago at a cost of $90. The machine had an expected life of 10 years at the time of purchase. For tax purposes, assume that ABC Corporation uses straight-line method to depreciate machine.

If the machine is not replaced, it can be sold for $10 at the end of its expected life. However, if it is replaced, the old machine can be sold today for $55.

A new machine can be purchased for $150. MACRS depreciation will be used for this machine. According to MACRS, its life is 3 years. Therefore, the applicable depreciation rates are 33%, 45%, 15%, and 7%.

The useful life of this machine is, however, 5 years. During this life, it will reduce operating expenses by $50 per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be worthless.

The firms tax rate is 35%. What are the cash flows that will occur from year 0 through year 5?

URGENT