A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000. The MARR = 12% per year. %3D Draw a cash-flow diagram.
A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000. The MARR = 12% per year. %3D Draw a cash-flow diagram.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A small company purchased now for $23,000 will lose $1,200 each year the first four
years. An additional $8,000 invested in the company during the fourth year will result
in a profit of $5,500 each year from the fifth year through the fifteenth year. At the
end of 15 years, the company can be sold for $33,000. The MARR = 12% per year.
%3D
Draw a cash-flow diagram.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36f22a46-fe25-4fa2-8033-35b55f57979b%2F37dd8fd0-811b-4c7b-b57a-e4f8620b8b2c%2Fh61xohg_processed.png&w=3840&q=75)
Transcribed Image Text:A small company purchased now for $23,000 will lose $1,200 each year the first four
years. An additional $8,000 invested in the company during the fourth year will result
in a profit of $5,500 each year from the fifth year through the fifteenth year. At the
end of 15 years, the company can be sold for $33,000. The MARR = 12% per year.
%3D
Draw a cash-flow diagram.
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