1. Engineering
  2. Civil Engineering
  3. draw the cash flow diagram for the following scenario dr...

Question: draw the cash flow diagram for the following scenario dr...

Question details

Draw the cash flow diagram for the following scenario: Dr. Who is replacing the Tartis with the Tartis Too at an initial cost of $650,000. The annual software upgrade and maintenance cost are $10,000. At the end of year 3, the Tartis Too will need a major overhaul costing $70,000. Dr. Who plans on selling it at the end of year 6 after paying for the software upgrade and maintenance. She estimates the salvage value to be 15% of the original purchase price. Interest is 6% APR.

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