Please make a cash flow diagram for this problem. An example of the diagram is also attached below. CFD:AA A A3181920950kr.6%Seln:A = asoo00 (Ale, 6%,20)0-66(1.06)20asboos1.0c0,A = $ 82,821 Choose from the two machines which is more economical.Machine AMachine BFirst CostSalvage valueAnnual operationAnnual maintenanceP8,000POP3,000P1,200P14,000P2,000P2,400P1,0003%3%10Taxes and insuranceLife, years10Money is worth at least 16%.

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Please make a cash flow diagram for this problem. An example of the

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

Please make a cash flow diagram for this problem. An example of the diagram is also attached below.

CFD:
A
A A A
3
18
19
20
950k
r.6%
Seln:
A = asoo00 (Ale, 6%,20)
0-66(1.06)20
asboos
1.0c0,
A = $ 82,821

Choose from the two machines which is more economical.
Machine A
Machine B
First Cost
Salvage value
Annual operation
Annual maintenance
P8,000
PO
P3,000
P1,200
P14,000
P2,000
P2,400
P1,000
3%
3%
10
Taxes and insurance
Life, years
10
Money is worth at least 16%.

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