Question: Mercruiser purchases a used, recently upgraded computer numerical control (CNC) machine for turning operations. It costs $50,000, and since the machine will increase productivity, the

Mercruiser purchases a used, recently upgraded computer numerical control (CNC) machine for turning operations. It costs $50,000, and since the machine will increase productivity, the company expects to increase sales by $7,000 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. Draw the cash flow diagram for the scenario described if Mercruiser uses a 10-year planning horizon.

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