Problem 2 A laser-cutting machine is purchased today for $23,000. There are no maintenance costs for the next 2 years. Maintenance at the end of year 3 is expected to be $2,000 with the subsequent years' maintenance costs each exceeding the previous year by $1000. An increase in revenues of $14,000 per year is expected. The planning horizon is 6 years. Draw the cash flow diagram.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Problem 2
A laser-cutting machine is purchased today for $23,000. There are no maintenance costs for the next 2
years. Maintenance at the end of year 3 is expected to be $2,000 with the subsequent years'
maintenance costs each exceeding the previous year by $1000. An increase in revenues of $14,000 per
year is expected. The planning horizon is 6 years. Draw the cash flow diagram.
Transcribed Image Text:Problem 2 A laser-cutting machine is purchased today for $23,000. There are no maintenance costs for the next 2 years. Maintenance at the end of year 3 is expected to be $2,000 with the subsequent years' maintenance costs each exceeding the previous year by $1000. An increase in revenues of $14,000 per year is expected. The planning horizon is 6 years. Draw the cash flow diagram.
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9780357033791
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Pride, William M
Publisher:
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