Question: NO EXCEL OR TABLES PLEASE, FORMULAS NEED TO BE SHOWN WITH WORK. Thanks in advance -- this is a MULTIPART question (A through G). IMPORTANT!
NO EXCEL OR TABLES PLEASE, FORMULAS NEED TO BE SHOWN WITH WORK. Thanks in advance -- this is a MULTIPART question (A through G). IMPORTANT! Show all your work where appropriate. No credit can be given if you dont show your logic/calculations.
6. 83 Points
Draw and solve the Cash Flow Diagram for Future Value F11. This is a 10 year Cash Flow, and interest rate is a compounded 9%, but I want the Future Value at Year 11.
a. $5000.00 is Invested Today for a piece of testing equipment (5 pts)
b. $2000.00 is Earned as Annual Income from end of years 4-10 through use of this test equipment (12 pts)
c. $400.00 is the Annual Maintenance Cost of the testing equipment for all 10 years (12 pts)
d. Salvage Value at the end of the 10th year is $1500.00 (6 pts)
e. There is an Arithmetic Gradient Income from years 6-10 with a Base Annuity of $500.00 and an Annual Gradient G of +$50.00 (20 pts)
f. There is a mortgage cost from years 1-10 with a starting amount of $1000, decreasing by $25 each year (years 2-10). (20 pts)
g.What is the Future Value F11 of this Engineering Cash Flow Investment? Draw the CFD (8 points)
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