Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Draw and solve the Cash Flow Diagram for Future Value F This is a 10 year Cash Flow and in...

Draw and solve the Cash Flow Diagram for Future Value F This is a 10 year Cash Flow and interest rate is a compounded 7% a $1100000 is Invested Today for a piece of testing equipment

Draw and solve the Cash Flow Diagram for Future Value “F”. This is a 10 year Cash Flow, and interest rate is a compounded 7%.

a) $11,000.00 is Invested Today for a piece of testing equipment

b) $2000.00 is Earned as Annual Income from end of years 1-10 through use of this test equipment

c) $500.00 is the Annual Maintenance Cost of the testing equipment for years 2-10 (the first year is under warranty)

d) Salvage Value (amount you can sell the equipment at scrap value) at the end of the 10th year is $1600.00

e) There is an Arithmetic Gradient Income from years 1-10 with a Base Annuity of $500.00 and an Annual Gradient G of -$50.00

f) There is a one time payment (cost) for software upgrades in year 8 of $2500

g) There is a one time rebate (income) from the testing manufacturer in year 1 of $750

What is the Future Value “F11 of this Engineering Cash Flow Investment from Years 1-10? (Note, F11, NOT F10)

Please help in answering this - I posted this earlier but the answer I got was not clear at all. Can someone else answer the question?

 

Apr 29 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions