2.14 Prepare the cashflow table for Example 2.3 2.15 Perfect Manufacturers decid

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2.14 Prepare the cashflow table for Example 2.3 2.15 Perfect Manufacturers decided to finance the company's new car. It paid $5,000 at the time of purchase and agreed to pay $5,000 on each of the next four an- niversaries of the purchase. The first year's maintenance is free. The company budgeted for sums of $500, $1,000, $1,500, and $2,000 for the subsequent four years' maintenance. It expects to sell the car at the end of the fifth year for an estimated price of $2,500. Prepare the cashflow table for this project 2.16 Five years ago, a firm purchased a used personal computer (PC) system for $2,500. The PC did not require any repair during the first two years. For the subsequent three years, the repair costs were $85, $130, and $195 respectively. The com- puter was sold at the end of the fifth year for $500. Develop the cashflow table and state any assumptions made. 2.17 Engineering Unlimited borrows $100,000 for purchasing a robotic system. It pays back the loan (capital and interest) through payments of $50,000 at the end of six months and of $65,000 on the first loan anniversary. Sketch the cashflow diagram. 2.18 You have borrowed $1,000 from a bank, which is to be paid back in five equal yearly installments of $235 each, beginning on the first loan anniversary. Prepare your cashflow table and sketch the cashflow diagram. 2.19 Prepare the bank's cashflow table and diagram for problem 2.18. 2.20 Sketch the cashflow diagram for Example 2.1. 221 Sketch the two cashflow diagrams separately for Example 2.2

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Solution 2.15 Cash Outflow Cash Inflow Year Down Payment Installment Maintenance Exps Salvage Value Net Cash Flow 0 5000 5000 1 5000 0 5000 2 5000 500 5500 3 5000 1000 6000 4 5000 1500 6500 5 0 2000 2500 -500 CashFLow Table Year 0 Cash Outflow 5000 1 Cash Outflow 5000 2 Cash Outflow 5500 3 Cash Outflow 6000 4 Cash Outflow 6500 5 Cash Inflow 500

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