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The Palm Tree Caf is considering to buy a new Coffee blending machine. A relative of the manager suggests her an offer of a well-known
The Palm Tree Caf is considering to buy a new Coffee blending machine.
A relative of the manager suggests her an offer of a well-known brand:
Pricing at $300,000, it would generate an income of $90,000 annually. The offer includes the first-year maintenance service free of charge. So, the first annual maintenance service charge of $30,000 would be payable at the beginning of the second year. Its life span can last for 6 years. The salvage value would be $3,000.
Draw a cash flow diagram for the offer.
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