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Investment $15,000 Annual operating Cost 2,000 Annual Revenues 6,000 Operating cost will increase by G=$400 annually from the second year (Arithmetic Gradient) to 6th yr.

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Investment $15,000 Annual operating Cost 2,000 Annual Revenues 6,000 Operating cost will increase by G=$400 annually from the second year (Arithmetic Gradient) to 6th yr. Salvage Value at the end of 6 year 2,000 Investment life n=6 years MARR=6% 9.Draw the cash-Flow Diagram 10. Calculate: PW (6%) 11. IRR 12 ERR

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