The manager of a production system expects to spend $100,000 the first year with amounts decreasing by $10,000 each year. Income is expected to be $400,000 the first year, decreasing by $50,000 each...

Extracted text: The manager of a production system expects to spend $100,000 the first year with amounts decreasing by $10,000 each year. Income is expected to be $400,000 the first year, decreasing by $50,000 each year. a) Draw cash flow diagrams of expenditures and income separately over a 6 year period at an interest rate of 10% per year. b) Determine the present worth of the company's net cash flow (present worth = present income - present expenditure). Please write fomula and show your solution step by step. Use compound interest tables. %3D