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1. 2. Consider the following two tractors a company can purchase. The following tables provide the costs the company will incur (in thousands of dollars)
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Consider the following two tractors a company can purchase. The following tables provide the costs the company will incur (in thousands of dollars) in the lifetime of each tractor. Initial Cost $17,000 $9,000 Diesel Gasoline Operating Costs per Year $10,000 $15,000 Expected Life 16 14 The transportation firm can only afford one of the tractors. The two tractors have identical production capabilities. The firm's cost of capital is 1%. Find the present value of the costs of using the two tractors. Diesel = 74954.76 TES: 74,954.762 Gasoline = 67529.48 : 67.529.482 Click "Verify" to proceed to the next part of the question. This question has 3 parts (i.e., you will need to click "verify" three times) Given that the net present value of the costs of the Diesel tractor are $74,954.76 and of the Gasoline tractor are $67,529.48, what are the equivalent annual costs for each machine? EAC Diesel EAC Gasoline Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $17,000, $17,000, $17,000, $16,000, and $19,000, respectively. The interest rate is 10%. Enter your answers rounded to 2 DECIMAL PLACES. What is the discounted payback period? If the firm accepts projects with discounted payback periods of less than 4 years, will the project be accepted? Yes What is the NPV of the projectStep by Step Solution
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