ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Question
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Chapter 2, Problem 75P
To determine

On December 1, Al Smith purchased a car for $25000. He paid $7500 immediately and agreed to pay three additional payments of $8000 each (which includes principal and interest) at the end of 1,2 and 3 years. Maintenance for the car is projected at $1000 at end of the first year and $2000 at the end of each subsequent year. Al expects to sell the car at the end of the fourth year (after paying for the maintenance work) for $12,000. Using these facts, prepare a table of cash flows.

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