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1. S175.000 is invested in a project at Time o. Over the next 5 years, the project produces $90.000 revenue and $8000 per year in
1. S175.000 is invested in a project at Time o. Over the next 5 years, the project produces $90.000 revenue and $8000 per year in expenses. Draw the gross and net cash flow diagram per year in s for this project. 2. A piece of equipment is purchased for $25.000 at Time 0. Its operating and maintenance (O& M) costs are $1000 in Year I. The O&M costs increase by an additional $500 each year for the next four years. At the end of Year 5 the project is terminated and the equipment is sold for scrap. generating $2000 in revenue. Draw the gross and net cash flow diagrams for this project. Monthly deposits of $62.50 are made into a savings account for three consecutive years. One year later $2550 is withdrawn from the account, leaving the account empty. Draw the cash flow diagram from the bank's perspective assuming interest is paid once per year 3. You open a savings account on January I with S150 deposit (call this Time 0). The account pays interest at the end of every month. Over the rest of the year, you make the following deposits 4. Deposit Date April 4 June 6 June 9 July 12 October 9 December 7 Deposit Amount $400 $500 $100 $700 $400 $1000 Draw the cash flow diagram
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