Unicom Co plans to buy a new machine to replace an old machine. The cost of the machine, payable immediately, is $800,000 and the machine has an expected life of five years. Additional investment in working capital of $90,000 will be required at the start of the first year of operation. An additional injection of $10,000 in working capital is expected at the end of year 2. At the end of five years, the machine will be sold for scrap, with the scrap value expected to be 5% of the initial purchase cost of the machine. The old machine was bought 5 years ago for $400,000 and now has a book value of $10,000. The market value of the old machine is $20,000. The company depreciates all machinery down to scrap value over a 5 year period.

Production and sales from the new machine are expected to be 50,000 units per year. Each unit will have a gross profit margin of $8 and selling price and variable cost inflation expected to be 2% per year. Prior to purchase of the machine, total fixed costs per year were $80,000 but with the new machine, total fixed costs will rise to $170,000 per year.

Unicom Co has an after-tax cost of capital of 12% which it uses as a discount rate in investment appraisal. The company pays profit tax an annual rate of 35% per year.

How do I estimate the cash flows for the 5 year period? I have already calculated for year 0. I just want to know how to go about calculating the rest