A machine costs 2000 and gives cash inflow of 25000 a year


Question: A machine costs $2000 and gives cash inflow of $25000 a year for three years. If the firm can sell the machine at Year-1,2,3 , what will be the optimal time to sell the machine. The maintenance cost and the salvage value are as follows: Year Maintenance Salvage Value 1 0 13000 2 8000 4000 3 12000 0

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Finance Basics: A machine costs 2000 and gives cash inflow of 25000 a year
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