Question
Draw and solve the Cash Flow Diagram for Future Value F 11 . This is a 10 year Cash Flow, and interest rate is a
Draw and solve the Cash Flow Diagram for Future Value F11. This is a 10 year Cash Flow, and interest rate is a compounded 9%, but I want the Future Value at Year 11.
$5000.00 is Invested Today for a piece of testing equipment
$2000.00 is Earned as Annual Income from end of years 4-10 through use of this test equipment
$400.00 is the Annual Maintenance Cost of the testing equipment for all 10 years
Salvage Value at the end of the 10th year is $1500.00
There is an Arithmetic Gradient Income from years 6-10 with a Base Annuity of $500.00 and an Annual Gradient G of +$50.00
There is a mortgage cost from years 1-10 with a starting amount of $1000, decreasing by $25 each year (years 2-10).
What is the Future Value F11 of this Engineering Cash Flow Investment?
Draw the CFD
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