28 -)) An investment of $ 170,000 was made 6 years ago for a construction machine. Annual revenue from the use of this machine is $40 000. A maintenance-repair expense of $3,000 was made for the first year, and $500 for each subsequent year, in addition to the previous year. The company plans to sell the construction equipment at the end of the year (8th year) after 2 years with a scrap value of 35 000$. Calculate the cash flow from 2 years ago accordingly. A) 35 500 B) 40 000 C) 36 500 D) 44 500 E) 36 000
28 -)) An investment of $ 170,000 was made 6 years ago for a construction machine. Annual revenue from the use of this machine is $40 000. A maintenance-repair expense of $3,000 was made for the first year, and $500 for each subsequent year, in addition to the previous year. The company plans to sell the construction equipment at the end of the year (8th year) after 2 years with a scrap value of 35 000$. Calculate the cash flow from 2 years ago accordingly. A) 35 500 B) 40 000 C) 36 500 D) 44 500 E) 36 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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28 -))
An investment of $ 170,000 was made 6 years ago for a construction machine. Annual revenue from the use of this machine is $40 000. A maintenance-repair expense of $3,000 was made for the first year, and $500 for each subsequent year, in addition to the previous year. The company plans to sell the construction equipment at the end of the year (8th year) after 2 years with a scrap value of 35 000$. Calculate the
A) 35 500
B) 40 000
C) 36 500
D) 44 500
E) 36 000
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