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?

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

Draw a cash flow diagram for a cash flow that starts at $1,000 at the end...

Draw a cash flow diagram for a cash flow that starts at $1,000 at the end of the first month and increases by $100 each month after that in perpetuity with an interest rate of 21% annual compounded monthly (Draw at least the first 5 months). What is the present value of this cash flow?

Please DRAW CASH FLOW diagram A small commercial building contractor purchased a used crane 2 years...

***Please DRAW CASH FLOW diagram*** A small commercial building contractor purchased a used crane 2 years ago for $60,000. Its operating cost was $2,500 in month one, $2,550 in month two, and amounts increasing by $50 per month through the end of year two (now). If the crane was sold for $48,000 now, what was its equivalent monthly cost at an interest rate of 1% per month?

Draw a cash flow diagram on EXCEL using the data below Year Cash Flow 0 -5,000...

Draw a cash flow diagram on EXCEL using the data below Year Cash Flow 0 -5,000 1 1000 2 2000 3 3000 4 4000 5 -1000

Using a cash flow diagram draw a diagram for $10,000 invested now, and in 5 years...

Using a cash flow diagram draw a diagram for $10,000 invested now, and in 5 years it grows to $30,000.

Under what conditions are the deadweight losses from a tax: Relatively small: Relatively large:

Question 5 (1 point) Suppose 65.47% of small businesses experience cash flow problems in their first...

Question 5 (1 point) Suppose 65.47% of small businesses experience cash flow problems in their first 5 years. A consultant takes a random sample of 522 businesses that have been opened for 5 years or less. What is the probability that less than 64.62% of the businesses have experienced cash flow problems? Question 5 options: 1) 0.6585 2) <0.0001 3) 0.3415 4) 0.5000 5) 17.6360 Question 6 (1 point) The rainfall in Aberdeen Reservoir, Washington (the wettest place in the...

Question 1: Statement of Cash Flows The statement of cash flow reports cash flow amounts including...

Question 1: Statement of Cash Flows The statement of cash flow reports cash flow amounts including 1) operating cash flow, 2) investing cash flows, and 3) financing cash flows. REQUIRED: Describe the corporate strategy of a company that has a positive operating cash flow, an investing cash flow that is negative, and a financing cash flow that is positive. Question 2: Common-Size Balance Sheets Analyzing common-size balance sheet for assets. Please open the attachment “Common-Size Assets”. Three companies are shown...

What is the difference between Cash Flow and Profit? A. Cash Flow is the cash collected...

What is the difference between Cash Flow and Profit? A. Cash Flow is the cash collected and paid in a company’s core operations. Profit tracks the revenue from customers and the costs of doing business. B. Profit tracks the cash collected and paid in a company’s core operations. That’s why it’s called the bottom line. Cash Flow is the change in cash and cash equivalents from one year to the next. C. Cash flow is found on the balance sheet...

Give examples in How to calculate payback period using cash flow diagram ??

Draw the cash flow diagram for the following data. A company purchases a machine to make...

Draw the cash flow diagram for the following data. A company purchases a machine to make widgets for $10,000. the collect payment for their widgets at the end of the year in which they are delivered. At the end of 5 years the machine must be scrapped at which time its value is $0. The following is the net revenue generated by the widget machine. Year 1 - $2,500 Year 2 - $3,500 Year 3 - $2,250 Year 4 -...

Question