Arnotts Corporation (ARN) is considering whether to replace its old biscuit making machine with a new one that costs $320,000 immediately. Assume the company tax rate is 30%. The new biscuit making machine will generate yearly sales which are 15% higher when compared to the sales generated by the old machine. This new biscuit making machine has a 20-year life for tax purposes. A competitor will buy the old biscuit making machine today for $80,000. The old biscuit making machine was generating sales of $500,000 annually. Three months ago, ARN paid Nous Consulting Group $5,000 in fees for advising on the decision to purchase a new biscuit making machine. The old biscuit making machine was incurring depreciation expenses of $10,000 per year, and has 20 years left until it reaches the end of its useful life. The new biscuit making machine is able to reduce annual operating expenses by $90,000 each year from $450,000. ARN will raise $75,000 through a private placement to partly fund the machine. What are the 'cash flows over the life'? [Describe and list separately each cash flow and the corresponding amount on a new line, as in lecture and tutorial examples.] [Provide the Cash flows over the life for one year only because the cash flows are the same during each year of the project's life]. [Where applicable, show as much working out as possible, otherwise you may be penalised]