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Direction. Illustrate a cash flow diagram that represents each problem 1. A lawn mower will cost $600. Maintenance costs are expected to be $180 per

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Direction. Illustrate a cash flow diagram that represents each problem 1. A lawn mower will cost $600. Maintenance costs are expected to be $180 per year. Income from mowing lawns is expected to be $720 a year. The salvage value after 3 years is expected to be $175. 2. A rental company spent $2500 on a new air compressor 7 years ago. The annual rental income from the compressor has been $750. The $100 spent on maintenance the first year has increased each year by $25. The company plans to sell the compressor at the end of next year for $150. Construct the cash flow diagram from the company's perspective. 3. Car purchased now for $4500 cash. Maintenance cost are 350% per year. The car is sold at the end of 4" year for $2000. 4. In January 2000, a firm purchases a used plotter for $500. Repairs cost nothing in 2001 or 2002. Repairs are $85 in 2003, $130 in 2004, and $140 in 2005. The machine is sold in 2005 for $300. 5. An engineering technology group just purchased new CAD software for $5000 now and pays $500 annually for 6 years starting 3 years from now for upgrades. 6. Consider a truck that is going to be purchased for $55,000. It will cost $9,500 each year to operate including fuel and maintenance. It will need to have its engine rebuilt in 6 years for a cost of $22,000 and it will be sold at year 9 for $6,000. 7. Construct a cash flow diagram for the following cash flows: $10000 outflow at time zero, $3000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5

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