Question
Ahmad is going to own a logistic company that has 50 trucks. The initial investment required for owning this company is $12,500,000. This fleet of
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Ahmad is going to own a logistic company that has 50 trucks. The initial investment required for owning this company is $12,500,000. This fleet of trucks requires annual maintenance that costs $250,000 in the first year and then increases by $50,000 afterwards. The cost of annual insurance on these trucks is $80,000. Ahmad considers owning this company for only five years, at that time he can sell it for $6,000,000. During these five years, Ahmad is going to offer these trucks for rent. What minimum annual rent per truck should Ahmed accepts in order to realize a rate of return of 10%?
$54703
$65103
$73022
$90340
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