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1234 567 ∞ %24 . Gruber Landscape is planning to buy a new all-purpose utility truck for $29,000. The truck has a useful life of 10 years at which time it can be sold for $5,500. Accoùntants at the firm have forecasted the following end-of-year net after-tax cash flows for the truck: Year Cash Flow ($) 4,500 4,500 4,000 4,000 -3,500 3,500 3,500 -3,500 3,500 3,500 9. 10 The company requires a hurdle rate of 12.00% for all projects. Using NPV and IRR demonstrate if the truck should be purchased. Show all your work

1234 567 ∞ %24 . Gruber Landscape is planning to buy a new all-purpose utility truck for $29,000. The truck has a useful life of 10 years at which time it can be sold for $5,500. Accoùntants at the firm have forecasted the following end-of-year net after-tax cash flows for the truck: Year Cash Flow ($) 4,500 4,500 4,000 4,000 -3,500 3,500 3,500 -3,500 3,500 3,500 9. 10 The company requires a hurdle rate of 12.00% for all projects. Using NPV and IRR demonstrate if the truck should be purchased. Show all your work

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1234 567 ∞ %24 . Gruber Landscape is planning to buy a new all-purpose utility truck for $29,000. The truck has a useful life of 10 years at which time it can be sold for $5,500. Accoùntants at the firm have forecasted the following end-of-year net after-tax cash flows for the truck: Year Cash Flow ($) 4,500 4,500 4,000 4,000 -3,500 3,500 3,500 -3,500 3,500 3,500 9. 10 The company requires a hurdle rate of 12.00% for all projects. Using NPV and IRR demonstrate if the truck should be purchased. Show all your work
Transcribed Image Text:1234 567 ∞ %24 . Gruber Landscape is planning to buy a new all-purpose utility truck for $29,000. The truck has a useful life of 10 years at which time it can be sold for $5,500. Accoùntants at the firm have forecasted the following end-of-year net after-tax cash flows for the truck: Year Cash Flow ($) 4,500 4,500 4,000 4,000 -3,500 3,500 3,500 -3,500 3,500 3,500 9. 10 The company requires a hurdle rate of 12.00% for all projects. Using NPV and IRR demonstrate if the truck should be purchased. Show all your work
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