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 - $3,000
Year 5 - $2,000

What is the present worth of the widget machine if the companies TVOM is 5.37%? $
What is the future worth at the end of the 5 year life cycle? $

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Expert Solution

Rahul Sunny answered 1 year ago

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