Reference no: EM131444350
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%.
a. $11,000.00 is Invested Today for a piece of testing equipment
b. $2000.00 is Earned as Annual Income from end of years 1-10 through use of this test equipment
c. $500.00 is the Annual Maintenance Cost of the testingequipment for years 2-10 (the first year is under warranty)
d. Salvage Value (amount you can sell the equipment at scrapvalue) at the end of the 10th year is $1600.00
e. There is an Arithmetic Gradient Income from years 1-10 with aBase Annuity of $500.00 and an Annual Gradient G of -$50.00
f. There is a one time payment (cost) for software upgrades in year8 of $2500
g. There is a one time rebate (income) from the testingmanufacturer in year 1 of $750
What is the Future Value “F11” of this Engineering Cash Flow Investment from Years 1-10? (Note, F11, NOT F10)
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: 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%. What is the Future Value “F11” of this Engineering Cash Flow Investment from Years 1-10?
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