Question

: It is estimated that a Precast Concrete Manufacturer, High Concrete Group, will produce 1,000 units of concrete slabs during the coming year. Profit each year is expected to be $150 per unit, so that at the end of the first year the total profit will be $150,000. As a result of supply chain and other technological improvements, production is expected to increase by 80 units per year thereafter in each of the following five years (years 2-6) Draw a cash flow diagram for this operation from the company's viewpoint that shows the profitearned each year.а. b. If the company can earn 7% per year on its capital, what is the future equivalent of themanufacturer's cash flow at the end of year six?

Fig: 1

Fig: 2

Fig: 3