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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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%
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Transcribed Image Text:Esc 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 F FS H Q Search ▬▬ A 5 % V F6 T G F7 - 6 A B Y F8 7 & H U N LDC F9 8 J LG BB ★ 1 F10 A 9 ( M K F11 O O L Alt F12 + P Prt Sc ScrLk = Ins + [{ Ctrl 1 Bac ?
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