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Question1 A company buys a machine for $50,000 Maintenance is expected to be $1,000 per year The life of the machine is expected to be

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Question1 A company buys a machine for $50,000 Maintenance is expected to be $1,000 per year The life of the machine is expected to be 20 years . At the end of twenty years, the machine should be worth no more than $2,000 Create the cash flow for this opportunity Question 2 The not for profit organization wishes to buy a van to transport supplies The cost of the van is $35,000 The van is expected to be driven 10,000 miles a year Gas mileage is 25 mpg and currently gas is $2.50 gal Assume you buy gas in bulk every 6 months The van will need basic maintenance every 5,000 miles with an expected cost of S100 The van will need major maintenance every 50,000 miles at S1,500 per maintenance visit The van should last about 150,000 miles At 150,000 miles the salvage value will be no more than $3,000 Create a cash flow for this opportunity

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