ou are looking at buying a new sorting machine for recycling plastics that will cost $15,000. Income from recyclin Expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machi n Year 1, $2500 in Year 2, etc.) a) Draw a cash flow diagram for the new machine. b) What is the net present worth of the machine over the 6-year period assuming you buy the machine and the interes 14% Search LDC LG TAP
ou are looking at buying a new sorting machine for recycling plastics that will cost $15,000. Income from recyclin Expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machi n Year 1, $2500 in Year 2, etc.) a) Draw a cash flow diagram for the new machine. b) What is the net present worth of the machine over the 6-year period assuming you buy the machine and the interes 14% Search LDC LG TAP
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are looking at buying a new sorting machine for recycling plastics that will cost $15,000. Income from recycling plastics is
expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machine. ($2000
in Year 1, $2500 in Year 2, etc.)
a) Draw a cash flow diagram for the new machine.
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b) What is the net present worth of the machine over the 6-year period assuming you buy the machine and the interest rate =
14%
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46°F
Rain showers
F1
1 !
Q
A
N
You are looking at buying a new sorting machine for recycling plastics that will cost $15,000. Income from recycling plastics is
expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machine. ($2000
in Year 1, $2500 in Year 2, etc.)
a) Draw a cash flow diagram for the new machine.
poil
b) What is the net present worth of the machine over the 6-year period assuming you buy the machine and the interest rate =
14%
F2 -
2
W
S
Alt
X
F3
3
Ő +
#
E
D
F4
C
4
Ⓡ
$
R
LL
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G
F7 -
6 A
B
Y
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H
U
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LDC
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8
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LG
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A
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