Question: Determine the rate of return for Problem 17. Should your company purchase the dump truck? Data From Problem 17: 17. Your company is looking at

Determine the rate of return for Problem 17.

Should your company purchase the dump truck?

Data From Problem 17:

17. Your company is looking at purchasing a dump truck at a cost of $65,000. The truck would have a useful life of five years. At the end of the fifth year the salvage value is estimated to be $10,000. The dump truck could be billed out at $55.00 per hour and costs $13.00 per hour to operate. The operator costs $22.00 per hour. Using 1,000 billable hours per year, determine the NPV for the purchase of the dump truck using a MARR of 18%. Should your company purchase the dump truck?

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