Solution-Draw the cash flow diagrams

Draw the cash flow diagrams

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Reference no: EM132482229

Project 1

Initial Cost = $13,000

Annual Cost Savings (this is like revenue, beginning EOY1) = $2000

Repaint Year 4 @ $10,000

Health Cost Savings (this is like revenue, for years 3-5) = $7000

Expected Life = 7 years

Using a Discounted Payback Analysis, and an interest rate of 6%:

a. Draw the Cash Flow diagrams

b. Draw the Payback table, showing all discounting

c. Select the Payback period (to one decimal of accuracy only)

Reference no: EM132482229

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Draw the cash flow diagrams

Reference no: EM132482229

Reference no: EM132482229

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