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Asked Dec 11, 2019

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- 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 – 3,000*t* (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)

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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