A construction company wants to construct some recreation fields. Construction will cost $245,000...
Question:
A construction company wants to construct some recreation fields. Construction will cost $245,000 and annual O&M expenses are $90,000. It is estimated that the value of the gained profit is about $185,000 annually. In year 5 another $75,000 will be needed to refurbish the recreation fields. The salvage value is estimated to be $110,000 after 9 years. Draw the cash flow diagram.
Cash Flow Diagram:
Cash Flow Diagram is used to present the transactions of the cash. These cash transactions take place during a project. This tool is used by engineers, accountants, finance managers, and project managers as well.
Answer and Explanation: 1
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View this answerThe cash flow diagram will be:
| Year | Outflow | Revenue | O & M Expenses | Refurbish Cost | Salvage Value | Final Cash... |
|---|
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Project Cash Flow: Analysis & Examples
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Chapter 10 / Lesson 1
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Learn about project operating cash flows. Discover types of cash inflow and outflow, and examine how cash flows work and are recorded on a balance sheet.
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