a delivery vehicle, Defender, D for your grocery delivery company cost $50,000, 10 years ago. it can be used for 4 more years with annual operating costs of $40,000 and an estimated salvage value of $10,000. A new better van can be purchased for 60,000. it has an economic life of 8 years. annual operating costs of $15,000, and an estimated salvage value of $20,000. if purchased the new better van will result in additional revenue of $15,000 per year. what market value now for the currently owned van will make the new van equally attractive. The MARR is 15% compounded annually. (the Pd is negative)
a delivery vehicle, Defender, D for your grocery delivery company cost $50,000, 10 years ago. it can be used for 4 more years with annual operating costs of $40,000 and an estimated salvage value of $10,000. A new better van can be purchased for 60,000. it has an economic life of 8 years. annual operating costs of $15,000, and an estimated salvage value of $20,000. if purchased the new better van will result in additional revenue of $15,000 per year. what market value now for the currently owned van will make the new van equally attractive. The MARR is 15% compounded annually. (the Pd is negative)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a delivery vehicle, Defender, D for your grocery delivery company cost $50,000, 10 years ago. it can be used for 4 more years with annual operating costs of $40,000 and an estimated salvage value of $10,000. A new better van can be purchased for 60,000. it has an economic life of 8 years. annual operating costs of $15,000, and an estimated salvage value of $20,000. if purchased the new better van will result in additional revenue of $15,000 per year. what market value now for the currently owned van will make the new van equally attractive. The MARR is 15% compounded annually. (the Pd is negative)
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