QUESTION 3 Cash flow diagrams summarize the flow of money over time and include

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QUESTION 3 Cash flow diagrams summarize the flow of money over time and include O first costs, operations and maintenance costs, overhaul costs, revenues, and salvage value. O fixed and variable costs only first costs, operations and maintenance costs, sunk costs, revenues, and salvage value. O only rough cost estimates QUESTION 4 Arithmetic Gradient series of cash flows may be thought of as O end-of-period cash receipt or disbursement in a uniform series, continuing for n periods O cash flow series that is not of constant amounts. Instead, the period-by period change in cash receipt or payment is a uniform rate O cash flow series that is not of constant amounts with the period-by period changes being unpredictable 9 cash flow series that is not of constant amounts,.Instead, the period-by-period chang?e in cash receipt or payment is a constant amount QUESTIONS For an infinite analysis period that is used when a service must be maintained for an infinite period which is mosty used for governmental analyses A present sum of money needs to be calculated that will be set aside at some interest rate to yield the funds required to provide the service indefinitely. The money set aside for future expenditures should increase The interest received on the money can be spent, but it is also acceptable to spend some part of the principal. it is not possible to save money indefinitely

Explanation / Answer

3. Cash Flow diagram includes:

First cost, operation and maintenance cost, sunk costs, revenues and salvage value.

4. Arithmetic gradient series of cash flows may be thought of as individual cash flow series that is not constant amounts. Instead period by period change in cash receipt or payment is a constant amount.

5. A present sum of money needs to be calculated that will be set aside at some interest rate to yield the funds required to provide this service indefinitely.

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