Solution-Draw the cash flow diagram

Draw the cash flow diagram

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Reference no: EM132927210

Question - A contractor is considering the following two alternatives:

Purchase a new computer system for $15,000. The systems is expected to last 6 years with a salvage value of $1,000.

Lease a new computer system for $3,000 per year, payable in advance (at the start of the year). The system should last for 6 years.

Draw the cash flow diagram for the three different alternatives, identifying the values for P, A and F as appropriate.

Reference no: EM132927210

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Draw the cash flow diagram

Reference no: EM132927210

Reference no: EM132927210

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