You are an analyst employed by Hanlon Ltd to assist in the evaluation of a new piece of machinery they are contemplating purchasing. They supply you with the following information:

Purchase price of machine today $100,000 Expected life of machine 8 years Annual expected revenues (at year end) $30,000 Annual operating costs of machine (at year end) $10,000 Salvage value of machine at end of year 8 $25,000 Increase in net working capital requirements today $20,000 Decrease in net working capital requirements at end of year 8 $10,000 They also tell you that the appropriate effective corporate tax rate for the firm is 30% and that the machine will be fully depreciated on a straight-line basis over the 8-year life. (i.e. no salvage value will be recognized when calculating depreciation each year). 13. Construct a table setting out the cash flows expected over the life of the project. Your table should clearly label each cash flow and indicate the timing of the cash flow. Your table should also provide the total net cash flow at each point in time. You may group together cash flows for years where the aggregated amount is not expected to change (i.e. from year 1 to 7). Show all workings. [10 marks]