A malibu boat will cost 32500 when purchased gasoline and

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Reference no: EM13378113

A Malibu boat will cost $32,500 when purchased. Gasoline and maintenance will approximately cost $25/hour, and equipment rental will cost $10/hour. The boat will be used for wakeboard instructing and will generate revenue of $100/hour. One instructional trip will use 4 hours on the boat's engine. Draw and simplify a cash flow diagram that will help you determine how many trips it will take to break even. (No credit will be given without a cash flow diagram). How many more trips will you need to buy a $75,000 boat if the original boat can be salvaged for $5,000 when you sell it?

Reference no: EM13378113

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