Mrs. Sam has just purchased a new car for 1M. She makes a down payment of 30% of the negotiated price and then makes payments of P15,000 per month thereafter for 60 months. Furthermore, she believes the car can be sold for P750,000 at the end of 3 years. Draw a cash flow diagram of this situation from Mrs. Sam’s point of view.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
Problem 12P
Question

Mrs. Sam has just purchased a new car for 1M. She makes a down payment of 30% of the negotiated price and then makes payments of P15,000 per month thereafter for 60 months. Furthermore, she believes the car can be sold for P750,000 at the end of 3 years. Draw a cash flow diagram of this situation from Mrs. Sam’s point of view.

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