Add a cash flow diagram to it and a detailed solution and show the formula you used
An engineer is considering the purchase of a copy machine for his/her consulting office. The copy machine will cost $2,000 and have a resale value of $400 at the end of its 5-year life. Having the machine in the office will reduce copy costs by $1,000 a year. Copy machine maintenance will be $500 for the first year and will increase by $100 each year. Does the machine have any future worth if the interest rate is 6%?