26 - )) An investment of $ 170,000 was made 6 years ago for a construction machine. Annual revenue from the use of this machine is $40 000. A maintenance-repair expense of $3,000 was made for the first year, and $500 for each subsequent year, in addition to the previous year. The company plans to sell the construction equipment at the end of the year (8th year) after 2 years with a scrap value of 35 000$. Calculate the cash flow from 4 years ago. A) 43 500 B) 37 000 C) 40 000 D) 36 000 E) 36 500
26 - )) An investment of $ 170,000 was made 6 years ago for a construction machine. Annual revenue from the use of this machine is $40 000. A maintenance-repair expense of $3,000 was made for the first year, and $500 for each subsequent year, in addition to the previous year. The company plans to sell the construction equipment at the end of the year (8th year) after 2 years with a scrap value of 35 000$. Calculate the cash flow from 4 years ago. A) 43 500 B) 37 000 C) 40 000 D) 36 000 E) 36 500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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26 - ))
An investment of $ 170,000 was made 6 years ago for a construction machine. Annual revenue from the use of this machine is $40 000. A maintenance-repair expense of $3,000 was made for the first year, and $500 for each subsequent year, in addition to the previous year. The company plans to sell the construction equipment at the end of the year (8th year) after 2 years with a scrap value of 35 000$. Calculate the
A) 43 500
B) 37 000
C) 40 000
D) 36 000
E) 36 500
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