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Draw the cash flow diagrams for: a) A manufacturing company buys a piece of equipment that costs $10,000, that they will retire at the end
Draw the cash flow diagrams for:
a) A manufacturing company buys a piece of equipment that costs $10,000, that they will retire at the end of 5 years and will have a salvage value of $2,000. The equipment will have annual operating costs of $1,000 each year. (note: No calculations are needed, just show the cash flows).
b) You take out a business loan for $12,000 at an interest rate of 6%. You will pay off the loan and interest at the end of year 3.
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