Reference no: EM13805982
Please draw cash flow diagram
Draw and solve the Cash Flow Diagram for Future Value F. This is a 10 year Cash Flow, and interest rate is a compounded 7%).
$10,000.00 is Invested Today for a piece of testing equipment
$2000.00 is Earned as Annual Income from end of years 4-10 through use of this test equipment
$400.00 is the Annual Maintenance Cost of the testing equipment for all 10 years
Salvage Value (income from selling the test equipment) at the end of the 10th year is $2500.00
There is an Arithmetic Gradient Income from years 1-10 with a Base Annuity of $500.00 and an Annual Gradient G of +$50.00 (years 2-10)
There is a mortgage cost from years 1-10 with a starting amount of $1000, decreasing by $25 each year (years 2-10).
What is the Future Value F of this Engineering Cash Flow Investment?
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