Q15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine A B First Cost, $ -13,000 –25,000 AOC, $ per Year -1,300 –400 Salvage Value, $ 5,000 6,000 Life, Years 3 6 a) The incremental cash flow between machines B and A in year 0 is $ . b) The incremental cash flow between machines B and A in year 3 is $ . c) The incremental cash flow between machines B and A in year 6 is $ .
Q15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6. Machine A B First Cost, $ -13,000 –25,000 AOC, $ per Year -1,300 –400 Salvage Value, $ 5,000 6,000 Life, Years 3 6 a) The incremental cash flow between machines B and A in year 0 is $ . b) The incremental cash flow between machines B and A in year 3 is $ . c) The incremental cash flow between machines B and A in year 6 is $ .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q15. For the
Machine |
A |
B |
First Cost, $ |
-13,000 |
–25,000 |
AOC, $ per Year |
-1,300 |
–400 |
Salvage Value, $ |
5,000 |
6,000 |
Life, Years |
3 |
6 |
a) The incremental cash flow between machines B and A in year 0 is $ .
b) The incremental cash flow between machines B and A in year 3 is $ .
c) The incremental cash flow between machines B and A in year 6 is $ .
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