Draw the Cash Flow Diagram for your car (or on of your family member's car). Assume the following: 1. time periods are in months and total of years is 5 (60 months). 2. The salvage value of the car at the end of service life is equal to 30% of the original

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Draw the Cash Flow Diagram for your car (or on of
your family member's car). Assume the following:
1. time periods are in months and total of years
is 5 (60 months).
2. The salvage value of the car at the end of
service life is equal to 30% of the original
price.
3. The comprehensive insurance is equal to 4%
of the car value for each year.
Change tires every 2 years.
Change battery every 2 years.
Estimate your other operating costs (fuel,
parking services, car wash).
4.
5.
6.
Transcribed Image Text:Draw the Cash Flow Diagram for your car (or on of your family member's car). Assume the following: 1. time periods are in months and total of years is 5 (60 months). 2. The salvage value of the car at the end of service life is equal to 30% of the original price. 3. The comprehensive insurance is equal to 4% of the car value for each year. Change tires every 2 years. Change battery every 2 years. Estimate your other operating costs (fuel, parking services, car wash). 4. 5. 6.
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