Felders manufacturing is considering the purchase of new equipment that costs $750,990 to replace equipment that is old and inefficient. Felder has found a buyer for the old equipment who will pay $7,960 for it. The new equipment is expected to produce $12,170 of additional revenue each year, but will result in additional maintenance cost of $1,800. The new equipment will have a salvage of $10,770 and will be depreciated over 10 years. Identify the amount and timing of the cash flows relevant to Felders decision to purchase the new equipment. (Show amounts that decrease cash flow with either a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)

		Cash flow		Time period
Purchase price of new equipment		$
Additional revenue		$
Additional maintenance cost		$
Selling price of old equipment		$
Salvage value of equipment		$

Time Period Options

0

1

10

0-10

1-10