Steel company is considering two different wire soldering machines. Machine1 has an initial cost of $100,000, costs $20,000 to set up and is expected to be sold for $20,000 after 10 years Machin 2 has an initial cost of $ 80,000, costs $ 30,000 to set up and is expected to be sold for $ 10,000 after 10 years. Both machine would be depreciated over 10 years using straight line depreciation. Queen has a tax rate of 30%.

a) what are the cash flows related to the acquisition of each machine?

b) what are the cash flows related to the disposition of each machine?