The Table Q3 shows the cash flow for a project over 6 years. Using the simple payback method, graph the cash flow for the duration of the project and state in what year the project will break even. Table Q3 Income Capital Costs Maintena nc e Costs Year 400,000 95 p00 2,000 01 90,000 2,000 3. $5,000 45,000 4. 100,000 1,000 105,000 1,000 110,000 1,000 Note: The value of scrap at the end of year 6 is €40,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Table Q3 shows the cash flow for a
project over 6 years. Using the simple
payback method, graph the cash flow for the
duration of the project and state in what
year the project will break even.
Table Q3
Year
Income
Ca pital
Costs
Maintena nce
Costs
400,000
1
95 p00
2,000
2.
90,000
2,000
3.
$5,000
45,000
4.
100,000
1,000
105,000
1,000
110,000
1,000
Note: The value of scrap at the end of year 6
is €40,000
Transcribed Image Text:The Table Q3 shows the cash flow for a project over 6 years. Using the simple payback method, graph the cash flow for the duration of the project and state in what year the project will break even. Table Q3 Year Income Ca pital Costs Maintena nce Costs 400,000 1 95 p00 2,000 2. 90,000 2,000 3. $5,000 45,000 4. 100,000 1,000 105,000 1,000 110,000 1,000 Note: The value of scrap at the end of year 6 is €40,000
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