Draw and solve the Cash Flow Diagram for Future Value \"F_11\". This is a 10 yea

Question

Draw and solve the Cash Flow Diagram for Future Value "F_11". This is a 10 year Cash Flow, and interest rate is a compounded 9%, but I want the Future Value at Year 11. $5000.00 is Invested Today for a piece of testing equipment $2000.00 is Earned as Annual Income from end of years 4-10 through use of this test equipment $400.00 is the Annual Maintenance Cost of the testing equipment for all 10 years Salvage Value at the end of the 10th year is $1500.00 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 There is a mortgage cost from years 1-10 with a starting amount of $1000, decreasing by $25 each year (years 2-10). What is the Future Value "F_11 " of this Engineering Cash Flow Investment? Draw the CFD

Explanation / Answer

Future value =-5000*(1.09)^10 -1400*1.09^9 ..................................+ 3025

=-8224.15

Year 0 1 2 3 4 5 6 7 8 9 10 Annual Income 2000 2000 2000 2000 2000 2000 2000 Gradient Income 500 550 600 650 700 Annual Maintainance cost 400 400 400 400 400 400 400 400 400 400 Mortgage cost 1000 975 950 925 900 875 850 825 800 775 Investment -5000 Salavge vcalue 1500 Cashflows -5000 -1400 -1375 -1350 675 700 1225 1300 1375 1450 3025

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.