A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $25,000 per year over the six-year study period. If MARR of 18% determine whether this is a good investment. a) Use the PW method. PW = $ b) The ERR of this project is % c) Determine the Simple Payback Period. years

A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $25,000 per year over the six-year study period. If MARR of 18% determine whether this is a good investment. a) Use the PW method. PW = $ b) The ERR of this project is % c) Determine the Simple Payback Period. years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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