A laser cutting machine is purchased today for $23,000. There are no maintenance costs for the next two years. Maintenance at the end of year 3 is expected to be $2,000, with each subsequent year’s maintenance costs exceeding the previous year by $1,000. An increase in revenues of $14,000 per year is expected during this time period. The planning horizon is 6 years. 

Draw the cash flow diagram.

Answer rating: 100% (QA)

The cash flow diagram for the laser cutting machine investment can be represented as follows Year 0 ... View the full answer