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1 ) Compute the number of calendar days needed to complete a one acre job using the current truck / trailer combination and the larger
Compute the number of calendar days needed to complete a one acre job using the current trucktrailer combination and the larger trucktrailer combination. Use this to calculate the maximum number of jobs McCoy could accept per year using each trucktrailer combination.
Using the question results & exhibit # compute the incremental annual revenues cash inflows and expenses cash outlfows given an investment in a larger truck ie what is the difference in revenue and expense between the old truck and the new truck
Using the results from # prepare a model of the initial investment and incremental cash flows for the next years. Utilize NPV IRR & the payback period.
What would you recommend to McCoy regarding the goat rental operation?
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