Metro Industries is considering the purchase of new equipment costing $1,500,000 to replace existing equipment that will be sold for $150,000. The new equipment is expected to have a $220,000 salvage value at the end of its five-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 20,000 units annually at a sales price of $40 per unit. Those units will have a variable cost of $22 per unit. The company will also incur an additional $80,000 in annual fixed costs.

Required

Identify the amount and timing of all cash flows related to the acquisition of the new equipment.