Bonka toys is planning to buy a robot costing $75,000.

after 5 years its salvage value will be $18,000.

an overhaul costing $10,000 will be needed in year 3.

operations and maintenance costs will be $2000 per year.

what is the cash flow stream for using this robot?

Please see explanation

Explanation:

The cash flow stream of Bonka Toys can be calculated using the following way:

                            Year 0          Year 1      Year 2     Year 3     Year 4    Year 5    

Robot                ($75,000)

Salvage value                                                                                          $18,000

Overhaul cost                                                           ($10,000)

Oper and maint                     ($2000)    ($2000)    ($2000)    ($2000)  ($2000)

Cash flows        ($75,000)     ($2000)   ($2000)    ($12,000)   ($2000)  $16,000  

answer; commerce clearing house;

answer; ///deficit;