On December 1, AI Smith purchased a car for $18,500. He paid $5000 immediately and agreed to

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On December 1, AI Smith purchased a car for $18,500. He paid $5000 immediately and agreed to pay three additional payments of $6000 each (which includes principal and interest) at the end of 1, 2, and 3 years. Maintenance for the car is projected at $1000 at the end of the first year and $2000 at the end of each subsequent year. AI expects to sell the car at the end of the fourth year (after paying for the maintenance work) for $7000. Using these facts, prepare a table of cash flows.
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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