# TransITRI is a transportation company with a recent need of a new construction equipment at a first cost of \$78,000 (Equation (1)), zero salvage value, and a cash flow before taxes (CFBT) per year t that follows Equation (2).                                            CFBT = \$30,000 – 3,000t (for t = 1, 2, … T)                                       (1)                                            CFBT = - \$78,000 (for t =0)                                                                  (2)Plot the cash flow diagram from year 0 (t=0) to year 9 (t=9)

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1. TransITRI is a transportation company with a recent need of a new construction equipment at a first cost of \$78,000 (Equation (1)), zero salvage value, and a cash flow before taxes (CFBT) per year t that follows Equation (2).

CFBT = \$30,000 – 3,000t (for t = 1, 2, … T)                                       (1)

CFBT = - \$78,000 (for t =0)                                                                  (2)

Plot the cash flow diagram from year 0 (t=0) to year 9 (t=9)

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Step 1

The calculation of different cashflows for different years is shown in below table:

Step 2

The resultant figures are s...

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