Draw and solve The Cash Flow Diagram for Future Value “F”. This is a 10 year Cash Flow, and interest rate is a compounded 7%).
A) $11,000.00 is Invested Today for a piece of testing equipment
B) $2000.00 is Earned as Annual Income from end of years 1-10 through use of this test equipment
C) $500.00 is the Annual Maintenance Cost of the testing equipment for years 2-10 (the first year is under warranty)
D) Salvage Value (amount you can sell the equipment at scrap value) at the end of the 10th year is $1600.00
E) There is an Arithmetic Gradient Income from years 1-10 with a Base Annuity of $500.00 and an Annual Gradient G of -$50.00
F) There is a one time payment (cost) for software upgrades in year 8 of $2500
G) There is a one time rebate (income) from the testing manufacturer in year 1 of $750
H) What is the Future Value “F11” of this Engineering Cash Flow Investment from Years 1-10? (Note, F11, NOT F10)