• The Rickshaw Dumpling food truck has a useful life of 4 years. • The King Taco food truck has a useful life of 2 years. Tables below provide the series of cash flows for investment in the Rickshaw Dumpling food truck and the King Taco food truck. Considering that the two investments are mutually exclusive, take a common- multiple approach. What is the higher equivalent uniform annual worth of the two investments, considering an interest rate of 7 percent? Round your answer to the nearest whole number. Do not use currency signs such as "$." Observation: The equivalent uniform annual worth may be positive or negative. CASH FLOWS FOR RICKSHAW DUMPLING Year Benefits Costs 0 0 |(16,238) 1 12,300 (2,297) 2 15,927 (2,211) 3 8,050 (1,440) 4 8,286 |(2,604) CASH FLOWS FOR KING TACO Year Benefits Costs 0 0 |(27,976) 1 9,666 (1,935) 2 5,351 (3,662) You Answered 10,952 Correct Answer 4,376 margin of error +/- 1%
• The Rickshaw Dumpling food truck has a useful life of 4 years. • The King Taco food truck has a useful life of 2 years. Tables below provide the series of cash flows for investment in the Rickshaw Dumpling food truck and the King Taco food truck. Considering that the two investments are mutually exclusive, take a common- multiple approach. What is the higher equivalent uniform annual worth of the two investments, considering an interest rate of 7 percent? Round your answer to the nearest whole number. Do not use currency signs such as "$." Observation: The equivalent uniform annual worth may be positive or negative. CASH FLOWS FOR RICKSHAW DUMPLING Year Benefits Costs 0 0 |(16,238) 1 12,300 (2,297) 2 15,927 (2,211) 3 8,050 (1,440) 4 8,286 |(2,604) CASH FLOWS FOR KING TACO Year Benefits Costs 0 0 |(27,976) 1 9,666 (1,935) 2 5,351 (3,662) You Answered 10,952 Correct Answer 4,376 margin of error +/- 1%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:• The Rickshaw Dumpling food truck has a useful life of 4 years.
• The King Taco food truck has a useful life of 2 years.
Tables below provide the series of cash flows for investment in the Rickshaw
Dumpling food truck and the King Taco food truck.
Considering that the two investments are mutually exclusive, take a common-
multiple approach. What is the higher equivalent uniform annual worth of
the two investments, considering an interest rate of 7 percent?
Round your answer to the nearest whole number. Do not use currency signs
such as "$." Observation: The equivalent uniform annual worth may be
positive or negative.
CASH FLOWS FOR RICKSHAW DUMPLING
Year Benefits Costs
0
0
|(16,238)
1
12,300 (2,297)
2
15,927 (2,211)
3
8,050 (1,440)
4 8,286 |(2,604)
CASH FLOWS FOR KING TACO
Year Benefits Costs
0
0
|(27,976)
1
9,666 (1,935)
2
5,351
(3,662)
You Answered
10,952
Correct Answer
4,376 margin of error +/- 1%
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