It is anticipated the system will have a salvage value of


Your firm invests $17, 500 and $12, 500 at the beginning and end of the first year respectively in a new system. Revenues from the new system are projected at $3,000 in the second year, $7, 500 each in the third year and fourth year, $10,000 each in the fifth and sixth year. It is anticipated the system will have a salvage value of $5,000 at the end of the sixth year. Draw a cash flow diagram for this system.

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Operation Management: It is anticipated the system will have a salvage value of
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