I want you to make a cash flow diagram on the given problem below. Only the Cash Flow Diagram (CFD), i am not asking you to solve it. 4.A corporation is considering purchasing a machine that will save $210,000 per year before taxes. The cost of operatingthe machine, including maintenance, is $60,000 per year. The machine, costing $120,000, will be needed for four yearsafter which it will have a salvage value of $16,000. If the firm wants a 12% rate of return before taxes, what is the netpresent value of the cash flows generated from this machine? Ans. P= $465,770.69

The measure that depicts the current stream of cash flows or income streams being generated at a…

Answered: I want you to make a cash flow diagram…

I want you to make a cash flow diagram on the given problem below. Only the Cash Flow Diagram (CFD), i am not asking you to solve it.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I want you to make a cash flow diagram on the given problem below. Only the Cash Flow Diagram (CFD), i am not asking you to solve it.

4.A corporation is considering purchasing a machine that will save $210,000 per year before taxes. The cost of operating
the machine, including maintenance, is $60,000 per year. The machine, costing $120,000, will be needed for four years
after which it will have a salvage value of $16,000. If the firm wants a 12% rate of return before taxes, what is the net
present value of the cash flows generated from this machine? Ans. P= $465,770.69

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