Question

Required information The annual revenues associated with several large apartment complexes are $250 $250 $300, $400. S100 and $150 for years 0, 1, 2 3.4, and 5, respectively. Determine the cumulative cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2, 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative. Year 10 Costs - 1500 3 4 400125 5 -310 450 0 0 The cash flow is Click to select) The Cumulative cash flow is CFS

Answer 1

А 1 Year 0 1 2 3 4 в C D Revenue Cumulative Cost $ Net CF $ CF $ ($1,500) $250 ($1,250) ($1,250) ($450) $250 ($200) ($1,450) ($300) $300 $0 ($1,450) ($400) $400 $0 ($1,450) ($125) $100 ($25) ($1,475) ($310) $150 ($160) ($1,635) 5

A B C D 1 Year 20 3 1 42 5 3 64 75 Cost $ - 1500 -450 -300 -400 -125 -310 Revenue $ 250 250 300 400 100 150 Net CFS =C2+B2 =C3+B3 =C4+B4 =C5+B5 =C6+B6 =C7+B7 Cumulative CFS =D2 =E2+D3 =E3+D4 =E4+D5 =E5+D6 =E6+D7

The cash flow is nonconventional. This is because the negative cash flows occur in every year.