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Draw the cash flow diagram

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Question - Robert Inc. is considering using a small device that will cost $5,000 to purchase.

At the end of its 8-year life, its salvage value will be $1,000. The robot will need to be overhauled in year 4 at a cost of $1,500. O&M costs per year will be $1,500. The robot will generate additional income of $2,500 per year from increased productivity. Draw the cash flow diagram.

Reference no: EM132593613

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