A machine bought at a price of 5000 pesos. Annual maintenance costs 1500 pesos, and annual income brought by the machine is 6000 pesos. The salvage value is expected to be 2000 pesos. Draw and simplify its cash flow diagram. Also, provide a short discussion of how you came up with your cash flow diagram.

A machine bought at a price of 5000 pesos. Annual maintenance costs 1500 pesos, and annual income brought by the machine is 6000 pesos. The salvage value is expected to be 2000 pesos. Draw and simplify its cash flow diagram. Also, provide a short discussion of how you came up with your cash flow diagram.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PB: A bookstore is planning to purchase an automated inventory/remote marketing system, which includes...

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Instructions: Please provide complete solution for full credit and draw the cash flow diagram. Box your final answers.
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