Construct the cash flow diagram for the given investment

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Reference no: EM131928445

Problem

A new factory is to be built by your company. It will cost $500,000 per year for two years. First payment is made now. Your company expects to increase revenues by $300,000 per year for 4 years after building the factory with first revenue occurring one year after construction is completed. This investment is funded by a loan from a bank of $1 million to be repaid in full with the last revenue receipt. Construct the Cash Flow Diagram for this investment.

Reference no: EM131928445

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