a. What are the appropriate capital spending items to include in a capital budgeting analysis for the decision to purchase the new truck (assuming the old one would be sold to make room in the garage)? b. What are the appropriate operating cash flows to consider for the first three years? c. If the new truck will also save the firm $1,000 a year in gas expenses, what are the appropriate operating cash flows for the first three years? d. Including the gas savings in part c, should the truck be purchased if the firm’s WACC is 15%? Why or why not?
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