1. In January 2008, a firm purchased a used plotter for $500. Repairs cost nothing in 2009 or 2010. Repairs were $85 in 2011, $130 in 2012 and $140 in 2013. The machine was sold in 2013 for $300.

a) Create cash flow analysis table.

b) Draw cash flow diagram (MATLAB or EXCEL).

c) Calculate the net present value of the cash flow. Here, present means January 2015. Assume interest rate of 1.5% per six months. Compounded every six months.

d) How will the answer to part c change if present is defined as January 2014?