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Relevant cash flow and timeline depiction For each of the following projects, determine the relevant cash flows, and depict the cash flows on a time

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Relevant cash flow and timeline depiction For each of the following projects, determine the relevant cash flows, and depict the cash flows on a time line. a. A project that requires an initial investment of $123,000 and will generate annual operating cash inflows of $25,000 for the next 16 years. In each of the 16 years, maintenance of the project will require a $4,500 cash outflow. b. A new machine with an installed cost of $80,000. Sale of the old machine will yield $33,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $24,000 in each year of a 6-year period. At the end of year 6, liquidation of the new machine will yield $20,000 after taxes, which is $11,000 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 $2 million and will yield annual operating cash inflows of $296,000 for each of the next 12 years. Operating cash outlays will be $24,000 for each year except year 5, when an overhaul requiring an additional cash outlay of $496,000 will be required. The asset's liquidation value at the end of year 12 is expected to be zero. a. A project that requires an initial investment of $123,000 and will generate annual operating cash inflows of $25,000 for the next 16 years. In each of the 16 years, maintenance of the project will require a $4,500 cash outflow. (Select all the choices that apply.) A. At year 0, the initial investment will be - $123,000. For each of the years 1 thru 16, the net cash flow will be $25,000. 3 14 15 16 B. Yoar 0 2 Cash flow - $123,000 $20,500 $20,500 $20,500 $20,500 $20,500 $20,500 c. At year 0, the initial investment will be - $123,000. For each of the years 1 thru 16, the net cash flow will be $25,000 - $4,500 = $20,500, D. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referred to as an annuity ? Click to select your answer(s) and then click Check Answer. 2 parts remaining Clear All Final Check

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