Geske Sausage Company has just purchased a new meat-grinding machine. The machine’s purchase price was $22,500. Geske made a 20% down payment and agreed to make nine monthly principal payments of...

Geske Sausage Company has just purchased a new meat-grinding machine. The machine’s purchase price was $22,500. Geske made a 20% down payment and agreed to make nine monthly principal payments of $2000 each. Geske also agreed to pay 1% interest on the unpaid principal each month. Prepare a cash flow diagram.

Solutions manual only with formula, without using Microsoft Excel.