A mechanical device will cost $20,000 when purchased. Maintenance will cost $1,000 per year. The device will generate revenues of $5,000 per year for 5 years. The salvage value is $7000. What is the total cash flow in Year 3? O a. $4,000 O b. $1,000 C. $6,000 O d. $5,000 P Type here to search

A mechanical device will cost $20,000 when purchased. Maintenance will cost $1,000 per year. The device will generate revenues of $5,000 per year for 5 years. The salvage value is $7000. What is the total cash flow in Year 3? O a. $4,000 O b. $1,000 C. $6,000 O d. $5,000 P Type here to search

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A mechanical device will cost $20,000 when purchased.
Maintenance will cost $1,000 per year. The device will
generate revenues of $5,000 per year for 5 years. The
salvage value is $7000.
What is the total cash flow in Year 3?
O a. $4,000
O b. $1,000
C. $6,000
d. $5,000
Type here to search

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