Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY 4 and will continue every three years thereafter up to and including year 13. The interest rate on these expenses is 12% p.a. (Section 4.10) a. Draw a cash-flow diagram.

b. What is the present equivalent of the overhaul expenses at time 0? Possible Answers: $ 5,195 $ 6,195 $ 7,195 $ 8,195

c. At the end of the period (13 years) how much will have been spent in total? I dont have possible answers for this one. Work up your best calculation.