Question
Draw and Solve the Cash Flow Diagram for Annual Value (A). This is a 10 year Cash Flow and Interest Rate is a compounded 7%
Draw and Solve the Cash Flow Diagram for Annual Value (A). This is a 10 year Cash Flow and Interest Rate is a compounded 7%
1) $10,000 is invested today for a machine.
2) $2000 is earned as annual income from end of years 1-10 from this machine.
3) $400 is an annual maintenance fee for all 10 years.
4) The salvage value of at the end of the 10th year is $1500
5) There's an arithmetic gradient income from years 1-10 with a base annuity of $500 and an Annual gradient G of +50
6)There is a one time payment(cost) of $2500 in year 8
7)There is a one time rebate(income) of $750 in year 1
What is the Annual Value (A) of the cash flow investment?
Please try to include all equations and drawings used and I will be sure to give you 5 stars, thanks.
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