Question
A project of providing electric scooters in an area has an initial cost of $400,000. The scooter service is planned for 5 years. The annual
A project of providing electric scooters in an area has an initial cost of $400,000. The scooter service is planned for 5 years. The annual maintenance costs are estimated at$40,000 annually and expected to increase $5,000 every year throughout the project planning time. An infrastructure maintenance will be required at the end of year 2, which is estimated to cost $50,000. The e-scooter system will generate revenue of $100,000 per year for 5 years and then it will be sold after the final annual maintenance. The salvage value of the remaining assets at the end of the project will be $50,000.
Draw the cash flow diagram. Assume "end-of-period" cash flows.
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