calculate the net present value for each of the dump trucka. which truck should your company purchase?
calculate the net present value for each of the dump trucka. which truck should your company purchase?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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your company needs to purchase a dump truck and has narrowed the selection down to two alternatives. the 1st alternative is to purchase a new dump truck for $65,000. at the end of the seventh year the salvage value of the new dump truck is estimated to be $15,000. the 2nd alternative is to purchase a used dump truck for $50,000. at the end of 4th year the salavage of the dump truck is estimated to be $5,000. the annual profits, revenues less operation costs, are $17,000 per year for either truck. using a MARR of 18% and twenty-eight years study period, calculate the
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