Your team is overseeing the renovation of your distribution…
Your team is overseeing the renovation of your distribution center. As part of the renovation, a new piece of order packaging equipment is being purchased for $160,000. The expected life of the equipment is 8 years, with an expected salvage value of $70,000. The equipment has an annual maintenance cost of $10,000 and will increase revenue by $75,000 beginning in year 4. Draw the cash flow diagram for this equipment.
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