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A delivery service feels they could increase their profits by purchasing a new truck for $59,000. This should lead to increased profits of $17,500 in
A delivery service feels they could increase their profits by purchasing a new truck for $59,000. This should lead to increased profits of $17,500 in the 1st year, $13,500 in the 2 nd year, and $13,500 in the 3rd year. It could sell the truck at the end of 3 years for $14,500. a. If the company's required rate of return is 6.5% compounded annually, what is the Discounted Cash Flow (DCF) of the net returns? Round to the nearest cent b. Is this a worthwhile investment
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