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You are analyzing a project with 7-year life. The project requires an initial equipment purchase of $60,000, and it will generate uniform annual revenue of

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You are analyzing a project with 7-year life. The project requires an initial equipment purchase of $60,000, and it will generate uniform annual revenue of $5,000 at the end of each year. Further, the project will have an equipment salvage value of $10,000 at the end of the seventh year, and it will require $2,000 each year for the operation. Appropriate interest rate is 10%. (a) Draw cash flow diagram

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