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28 -)) 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 2 years ago accordingly. A) 35 500 B) 40 000 C) 36 500 D) 44 500 E) 36 000

28 -)) 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 2 years ago accordingly. A) 35 500 B) 40 000 C) 36 500 D) 44 500 E) 36 000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...
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28 -))
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 2 years ago accordingly.
A) 35 500


B) 40 000


C) 36 500


D) 44 500


E) 36 000

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