An investment on a machinery can yield following cash flow for 8 years and in the end of the 8th year resale value will be 15,000 dollars. How much can be invested on this machinery at the present: time, considering the interest rate of 10% compounded annually. Please explain your work in detail. C-? 1-2000 -2000 -2000 -2000 1-1000 -1000 1-1000 -1000 L-$15,000 8. 1. 2. 3. 4. 5. 6. 7. I IncomoI: Sabage Value

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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An investment on a machinery can yield following cash flow for 8 years and in the end of the 8th
year resale value will be 15,000 dollars. How much can be invested on this machinery at the present
time, considering the interest rate of 10% compounded annually. Please explain your work in detail.
C-? 1-2000 1-2000 -2000 -2000 -1000 -1000 1-1000 -1000
L-$15,000
2.
4.
7.
C: Cost, I: Income, L: Salvage Value
Transcribed Image Text:An investment on a machinery can yield following cash flow for 8 years and in the end of the 8th year resale value will be 15,000 dollars. How much can be invested on this machinery at the present time, considering the interest rate of 10% compounded annually. Please explain your work in detail. C-? 1-2000 1-2000 -2000 -2000 -1000 -1000 1-1000 -1000 L-$15,000 2. 4. 7. C: Cost, I: Income, L: Salvage Value
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