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A delivery service feels they could increase their profits by purchasing a new truck for $55,000. This should lead to increased profits of $18,500 in

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A delivery service feels they could increase their profits by purchasing a new truck for $55,000. This should lead to increased profits of $18,500 in the 1 st year, $15,000 in the 2 nd year, and $7,500 in the 3 rd year. It could sell the truck at the end of 3 years for $14,000. a. If the company's required rate of return is 7.5\% compounded annually, what is the Discounted Cash Flow (DCF) of the net a. 11 lie cuilpaily s iequireu idie ir ietuin is 7.5\% compounded annually, what is the Discounted Cash Flow (DCF) of the net returns? Round to the nearest cent b. Is this a worthwhile investment? a. Yes Round to the nearest cent b. Is this a worthwhile investment? a. Yes b. No

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