Question: Homework: Homework Set 4 Question 9, P11-1 (simil... Par 1 of 3 HW Score: 19.17%, 9.58 of 50 points O Points: 0 of 2 Save

Homework: Homework Set 4 Question 9, P11-1 (simil... Par 1 of 3 HW Score: 19.17%, 9.58 of 50 points O Points: 0 of 2 Save Relevant cash flow and timeline depiction For each of the following projecte, decermin of S27,000 for the card 20 years. In each of the 20 yrs, maintenance of short will run a SS 300 cash ou the relevant cash flows, and deplot the cash flows on a timeline. a in the for an initial investment of S122,000 and wil generate annual aparating cashi b. A new rachine with an installed cost of $2.000. Sal of the old machine will yield $29.000 after taxes. Operating cash infos gerierated by the replacement wil exceed the operating cash inflaws of the old irachire by $18,000 in each year of a year period. At the end of year & liquidation of the new machine will yield 515.000 aller taxes, which is $9.000 greater than the after-tax proceeds expected from the old machine had il Leen relained and liquidated at the end of year 6. c. An asset that requires an initial investment of $2 milion and will yield annual operating cash indows of $306.000 for each of the next 14 years. Operating cash outlaya will be $19.000 for each year except year 5. when en overhaul requiring an additional cash outlay of $509,000 will be required. The seel's licuidation value at the end of year 14 is expecled to be zero. a. A project that reguires an initial investment of $122,000 and wil generate annual operating cast influx of S27,000 for the next 20 years. In each of the 20 years, inaintenance of the project recuire a $5,300 cash wulflow. (Seluctal the choices ihal apply.) D A Year 0 1 2 3 18 20 Cash flow-S122,000 $21.700 321,700 S21.700 $21.700 $21,700 $21.700 B. This is a conventional cash flow pattem, where the cas infions are of equal size, which is referred to as an annuity. c. Al year, the initial investirent will be - 3122.000. For each of the years 1 thru 20, the net cash flow will be $27.000 - 35,300 - 321,700 D. At year 0. the initial investment will be - $122.000. For each of the years 1 thru 20, the net cash flow will be $27.aca
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