Question
A logistics company plans to buy a fleet of trucks for $4,80,000. The trucks will generate annual cash inflows of $95,000 for 8 years. The
A logistics company plans to buy a fleet of trucks for $4,80,000. The trucks will generate annual cash inflows of $95,000 for 8 years. The trucks have no salvage value. The company’s discount rate is 13%.
Requirements:
- Calculate the NPV.
- Compute the IRR.
- Determine the Payback Period.
- Evaluate the PI.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
