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770 000 $ investment was made 7 years ago for a construction equipment. Annual revenue from the use of this machine is $140 000. 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 (9th year) after 2 years with a scrap value of 135,000 USD. Calculate the cash flow from 5 years ago. A) 136 000 B) 143 500 C) 135 500 D) 136 500 E) 135 000

770 000 $ investment was made 7 years ago for a construction equipment. Annual revenue from the use of this machine is $140 000. 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 (9th year) after 2 years with a scrap value of 135,000 USD. Calculate the cash flow from 5 years ago. A) 136 000 B) 143 500 C) 135 500 D) 136 500 E) 135 000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...
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770 000 $ investment was made 7 years ago for a construction equipment. Annual revenue from the use of this machine is $140 000. 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 (9th year) after 2 years with a scrap value of 135,000 USD. Calculate the cash flow from 5 years ago.
A) 136 000


B) 143 500


C) 135 500


D) 136 500


E) 135 000

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