Formulate the Present Worth, Future Worth and Annual Equivalent, and draw cash flow diagram

Identifying Cash Inflows and Outflows 5.1 K&J Enterprise Inc. has purchased a small motor engine line to go in golf carts. The total purchase cost was $1.5 million, which can generate revenues of $650,000 per year. Direct manufacturing costs are expected to run $220,000 a year and other fixed cost expenditures would be somewhere near $80,000 a year. The O&M cost would be around $45,000 a year, and K&J expects to pay