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Cash Flow for EOY or MOY

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If an alternative has monthly payments of $10,000 a month for three years with a purchase price of $75,000 at the end of year three, what would the cash flow diagram look like? Select the correct choice from each pair of answers.

$120,000 EOY 1
$120,000 MOY 1
$120,000 EOY 2
$120,000 MOY 2
$120,000 EOY 3
$120,000 MOY 3
$75,000 EOY 3
$75,000 MOY 3

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Solution Summary

This solution provides the cash flow diagrams for EOY and MOY.

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Attached you will find the PDF documents to some practice study problems that I am still trying to grasp and understand. These are the ones that I did not know how to do. Your help is greatly appreciated.

Chapter 8: practice problem 25 on PDF document page 234

Chapter 21: practice problem 8 on PDF document page 595

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