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4 [11 marks] 11 points Save Aer Lulu Hypermarket has a pickup truck that it uses to deliver the online orders to their customers The
4 [11 marks] 11 points Save Aer Lulu Hypermarket has a pickup truck that it uses to deliver the online orders to their customers The truck must be either overhauled or replaced with a new truck. The company has assembled the following information old Truck Purchase cost $18,000 New Truck $48,000 Remaining book value $28,000 Overhaul needed $27,000 Annual cash operating $20,000 $18,500 costs Salvage value-in five years $14.000 $12,000 If the company keeps and overhauls its old delivery truck currently in use, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in with another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 9% discount rate Use the following tables to determine the appropriate discount factor(s) Frecked wells a single product cand a The spare the daect materal budget fo the pater deg hee 10 Hudged production of Das for Mach 14,000 15,500 Astil 11,000 May 12,600 Un Jee Fly 1430 Pre Di Mane April, May, June, and quarter I The
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