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A medium sized profitable corportatin is considering the purchase of a $3,000 used pickup truck for use by the shipping and receiving department. During the
A medium sized profitable corportatin is considering the purchase of a $3,000 used pickup truck for use by the shipping and receiving department. During the truck's five-year useful life, it is estimated that the fir will save $800 per year after paying all costs of owning and operating the truck. The trucks salvage value is estimated at $750. The before tax MARR =15% and the after tax MARR is 10% What is the before tax rate of return?
a.10%
B. 12.7%
C 14.7%
D. 15.7%
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