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A truck can be purchased for $150000 and is expected to have a resale value of $40000 at the end of 5 years. The truck
A truck can be purchased for $150000 and is expected to have a resale value of $40000 at the end of 5 years. The truck is expected to generate cash inflows of $80000 per annum over the 5 years and its operating costs are expected to be $30000 per annum. If the required rate of return is 15 per cent, what is the NPV of the truck?
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