The Table Q3 shows the cash flow for a project over 6 years. Using the simple payback method, graph the cash flow for the duration of the project and state in what year the project will break even. Table Q3 Income Capital Costs Maintena nc e Costs Year 400,000 95 p00 2,000 01 90,000 2,000 3. $5,000 45,000 4. 100,000 1,000 105,000 1,000 110,000 1,000 Note: The value of scrap at the end of year 6 is €40,000

The Table Q3 shows the cash flow for a project over 6 years. Using the simple payback method, graph the cash flow for the duration of the project and state in what year the project will break even. Table Q3 Income Capital Costs Maintena nc e Costs Year 400,000 95 p00 2,000 01 90,000 2,000 3. $5,000 45,000 4. 100,000 1,000 105,000 1,000 110,000 1,000 Note: The value of scrap at the end of year 6 is €40,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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