Prepare a table of cash flows using given facts

Reference no: EM131965443

Question: On December 1, Al Smith Purchased a car for dollar 18, 500. He paid dollar 5,000 immediately and agreed to pay three additional payments of dollar 6,000 each (which includes principal and interest at the end of 1, 2, and 3 years. Maintenance for the car is projected at dollar 1,000 at the end of the first year and dollar 2000 at the end of each subsequent year. Al expects to sell the car at the end of the fourth year (after paying the maintenance work) for dollar 7,000. Using these facts, prepare a table of cash flows.

Reference no: EM131965443

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