1. Draw and solve the Cash Flow Diagram for Future Value “F”. This is a 10 year Cash Flow, and interest rate is a compounded 7%).
a. $5000.00 is Invested Today for a piece of testing equipment
b. $2000.00 is Earned as Annual Income from end of years 4-10 through use of this test equipment
c. $400.00 is the Annual Maintenance Cost of the testing equipment for all 10 years
d. Salvage Value at the end of the 10th year is $1500.00
e. There is an Arithmetic Gradient Income from years 6-10 with a Base Annuity of $500.00 and an Annual Gradient G of +$50.00
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