The cash flow for the situation above can be tabulated as follows:

| Year | Cash Flow ($) |
|------|---------------|
| 0 | -100,000 |
| 1 | -1,000 |
| 2 | -1,000 |
| 3 | -800 |
| 4 | -800 |
| 5 | -600 |
| 6 | -400 - 5,000 + 6,000 |

Explanation:

- In year 0, the cost to install the power line is $100,000. This is an outflow, so it is represented as a negative number.
- In years 1 and 2, the power costs are $1,000 per year. These are also outflows, so they are represented as negative numbers.
- In years 3 and 4, the power costs decrease to $800 per year. These are also outflows, so they are represented as negative numbers.
- In year 5, the power cost decreases further to $600. This is an outflow, so it is represented as a negative number.
- In year 6, the power cost is $400. Additionally, the power line is dismantled at a cost of $5,000. However, the waste is sold for a salvage value of $6,000. Therefore, the net cash flow for year 6 is -$400 - $5,000 + $6,000 = $600. This is an inflow, so it is represented as a positive number.

Question

The cash flow for the situation above can be tabulated as follows:

| Year | Cash Flow ($) |
|------|---------------|
| 0    | -100,000      |
| 1    | -1,000        |
| 2    | -1,000        |
| 3    | -800          |
| 4    | -800          |
| 5    | -600          |
| 6    | -400 - 5,000 + 6,000 |

Explanation:

- In year 0, the cost to install the power line is $100,000. This is an outflow, so it is represented as a negative number.
- In years 1 and 2, the power costs are $1,000 per year. These are also outflows, so they are represented as negative numbers.
- In years 3 and 4, the power costs decrease to $800 per year. These are also outflows, so they are represented as negative numbers.
- In year 5, the power cost decreases further to $600. This is an outflow, so it is represented as a negative number.
- In year 6, the power cost is $400. Additionally, the power line is dismantled at a cost of $5,000. However, the waste is sold for a salvage value of $6,000. Therefore, the net cash flow for year 6 is -$400 - $5,000 + $6,000 = $600. This is an inflow, so it is represented as a positive number.

Knowee AI · Accepted Answer

The cash flow for the situation above can be tabulated as follows:

| Year | Cash Flow ($) |
|------|---------------|
| 0    | -100,000      |
| 1    | -1,000        |
| 2    | -1,000        |
| 3    | -800          |
| 4    | -800          |
| 5    | -600          |
| 6    | -400 - 5,000 + 6,000 |

Explanation:

- In year 0, the cost to install the power line is $100,000. This is an outflow, so it is represented as a negative number.
- In years 1 and 2, the power costs are $1,000 per year. These are also outflows, so they are represented as negative numbers.
- In years 3 and 4, the power costs decrease to $800 per year. These are also outflows, so they are represented as negative numbers.
- In year 5, the power cost decreases further to $600. This is an outflow, so it is represented as a negative number.
- In year 6, the power cost is $400. Additionally, the power line is dismantled at a cost of $5,000. However, the waste is sold for a salvage value of $6,000. Therefore, the net cash flow for year 6 is -$400 - $5,000 + $6,000 = $600. This is an inflow, so it is represented as a positive number.

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