An investment vehicle purchased with cash for US$ 30000 today will be disposed of with a scrap value of $4000 at the end

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answerhappygod
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An investment vehicle purchased with cash for US$ 30000 today will be disposed of with a scrap value of $4000 at the end

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An investment vehicle purchased with cash for US$ 30000 today
will be disposed of with a scrap value of $4000 at the end of its
12-year useful life. Expenses related to the production of the
vehicle in question; It is estimated that $2000 per year for the
first 4 years, 6% more per year than the previous year for the
following 4 years, and 5000 S per year for the remaining years. The
expected annual revenues from production are; It is expected to be
$7000 each year for the first two years, S$2000 more each year than
the previous year for the next 5 years, and S$1000 less each year
than the previous year in the following years. It is estimated that
the annual average interest rate throughout the economic life will
be 8% for the first 6 years and 10% each year for the remaining
years. According to these data;
a) Draw the cash flow diagram for the problem
b) Calculate the present value, future value and annual value
equivalents of the cash flow series.
c) Examine the investment decision
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