A company develops a system to produce a new product. An investment of $300,000 is required to assemble the equipment and it is estimated that the residual value in the market is $80,000. For accounting purposes, the residual value is $20,000. The useful life of the machinery is 5 years. To operate the business, a "petty cash" of $10,000 is required. The demand for the product is 45,000 units in the first three years and 50,000 in the last 2 years. The sale price of the product is $76 and its production cost is $42 in the first year and it is estimated to drop by 3% per year, thanks to the "lean Manufacturing" program. The annual fixed cost of production is $1,300,000. The capital recovery ratio is 10%, and the contribution rate is 30%. Assume that depreciation method is the sum of the digits. A loan of $250,000 is taken to finance the investment and it is taken for 3 years and will pay 6% compound interest per year. There is a 2% investment credit for the first year. 

A. Calculate the capital flow generated by the loan and depreciation. 

B. Calculate the annual gross profit for the 5 years

C. Calculate the profit subject to contributions and the contributions to be paid. (25 points) 

D. Calculate the net flow and its present value. (15 points)