Ivanhoe Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $42,800. Cost savings with this truck are expected to be $13,100 for the first two years, $9,100 for the following two years, and $5,100 for the last three years of the truck's useful life. What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.) Payback period 5.58 Discounted payback period years What is the discounted payback period for this project with a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 52.75.) 17.66 years
Ivanhoe Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $42,800. Cost savings with this truck are expected to be $13,100 for the first two years, $9,100 for the following two years, and $5,100 for the last three years of the truck's useful life. What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.) Payback period 5.58 Discounted payback period years What is the discounted payback period for this project with a discount rate of 10 percent? (Round answer to 2 decimal places, e.g. 52.75.) 17.66 years
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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