Engineering Economics
What is the basic accounting equation?

Owner’s equity = liability – assets
Liability = assets + owners’ equity
Owner’s equity = assets + liability
Assets = liability + owner’s equity

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Engineering Economics
In a cash-flow diagram:

Time 0 is considered to be the present
A vertical arrow pointing up indicates a positive cash flow
All of these
Time 1 is considered to be the end of time period 1

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