what is the cash flow diagram for this question? Beckman Technologies, a relatively small manufacturer of...

what is the cash flow diagram for this question?

Beckman Technologies, a relatively small manufacturer of precision laboratory equipment, borrowed $2 million to renovate one of its testing labs. In an effort to pay off the loan quickly, the company made four payments in years 1 through 4, with each payment being twice as large as the preceding one. At an interest rate of 10% per year, what was the size of the fi rst payment?

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Expert Solution

Company Borrowed = $2000000

Planned to Pay within 4 years with interest

Interest per year = 2000000*10/100 = 200000.

Interest for 4 years = 200000*4 = 800000.

Total amount to be paid within 4 years = 2000000+800000= 2800000.

Let do the calculation = 2800000÷15 = 186666.

Then year wise break down = 186,666+ 373333+746666+1494444.

Now the first payment paid by the Company is $186666.

Rahul Sunny answered 2 years ago

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