9) An investor wants to invest in the trucking business. To run this business, 10 trucks should be acquired. The market price of a truck is $50 000. It is also necessary to pay $390 000 per year as wages to the truck drivers. Vehicle repair and maintenance costs are $10 000 per year. What is the annual worth of the project's costs at 5% MARR over a 10-year period? A) $400 000 B) $406 475 C) $454 750 D) $464 750 E) $551 800

9) An investor wants to invest in the trucking business. To run this business, 10 trucks should be acquired. The market price of a truck is $50 000. It is also necessary to pay $390 000 per year as wages to the truck drivers. Vehicle repair and maintenance costs are $10 000 per year. What is the annual worth of the project's costs at 5% MARR over a 10-year period? A) $400 000 B) $406 475 C) $454 750 D) $464 750 E) $551 800

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

9) An investor wants to invest in the trucking business. To run this business, 10 trucks should be
acquired. The market price of a truck is $50 000. It is also necessary to pay $390 000 per year as
wages to the truck drivers. Vehicle repair and maintenance costs are $10 000 per year. What is
the annual worth of the project's costs at 5% MARR over a 10-year period?
A) $400 000
B) $406 475
C) $454 750
D) $464 750
E) $551 800

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