Illustrate the cash flow diagram. An investor bought a jaw crusher worth P25,000.00 with an expected return of 6% in a period of 8 years. Scenario A: Assume no maintenance. Scenario B: Maintenance of P1,000.00 annually Scenario C: Which year will it be having the return of investment or profit without considering inflation and maintenance?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
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Illustrate the cash flow diagram.
An investor bought a jaw crusher worthP25,000.00 with an expected return of 6% in a period of 8 years.
Scenario A: Assume no maintenance.
Scenario B: Maintenance of P1,000.00 annually
Scenario C: Which year will it be having the return of investment or profit without considering inflation and maintenance?
Transcribed Image Text:Illustrate the cash flow diagram. An investor bought a jaw crusher worthP25,000.00 with an expected return of 6% in a period of 8 years. Scenario A: Assume no maintenance. Scenario B: Maintenance of P1,000.00 annually Scenario C: Which year will it be having the return of investment or profit without considering inflation and maintenance?
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