Question: Mercruiser purchases a used recently upgraded computer numerical control (CNC) machine for turning operations. It costs $52,000, and since the machine will increase productivity, the

for turning operations. It costs $52,000, and since the machine will increase

Mercruiser purchases a used recently upgraded computer numerical control (CNC) machine for turning operations. It costs $52,000, and since the machine will increase productivity, the company expects to increase sales by 57.000 per year. Maintenance costs are $1,000 per year starting 1 year after purchase. Every 5 years, the machine will require a software upgrade costing $5,000 Choose the cash flow diagram for the scenario described if Mercruiser uses a 10-year planning horizon 55.000 55 000 51 000 2 10 $7,000 552.000 $5,000 57.000 10 a 10 $1 000 552,000 57.000 DNPS 16 18 $1.000 51000-5000 $52,000 $7.000 51000 lo $5.000 552,000 $1.000 6 57.000 552.000 $5,000 55.000

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