Question 7: [10 marks] (Start a new page) A computerized machining centre has been proposed for a small tool manufacturing company. If the new system, which costs $50,000 and has a useful life of 3 years, is installed it will generate annual revenue of $100,000 and will require $20,000 in annual labour costs, $12,000 in annual material expenses and another $8000 in annual overhead (power and utility) expenses. Assume that the general rate of inflation is anticipated to average 6% during the next 3 years. Also assume that wages (labour) and overheads will increase by 5% per year, and the cost of material will increase by 4% per year. Assume sales revenue to climb at the general inflation rate. Draw the associated cashflow diagram based on equivalent actual dollars. Show your calculations