Mark decided to start a small car wash business. To get started, he purchased the main...

 

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Mark decided to start a small car wash business. To get started, he purchased the main equipment for a total of $2,000. Each year, he usually collects $1,500 in revenue from car washes. He also needs to refill the detergents every year, this usually costs him about $200 per year. In his third year, one of his equipment broke and he had to get it fixed for $700. After 6 years, he decided to discontinue his car wash business because he wanted to travel. He was able to sell his equipment online for $300. Draw the cashflow diagram for Mark's 6-year business. Mark decided to start a small car wash business. To get started, he purchased the main equipment for a total of $2,000. Each year, he usually collects $1,500 in revenue from car washes. He also needs to refill the detergents every year, this usually costs him about $200 per year. In his third year, one of his equipment broke and he had to get it fixed for $700. After 6 years, he decided to discontinue his car wash business because he wanted to travel. He was able to sell his equipment online for $300. Draw the cashflow diagram for Mark's 6-year business.

Answer rating: 100% (QA)

Cash Flow Diagram for Marks Car Wash Business Year 0 to Year 6 Year 0 Cash ... View the full answer