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Answer the following questions. Organize financial analysis in supporting appendices. Summarize your descriptive and concluding comments in the main body of the report. 1. Compute
Answer the following questions. Organize financial analysis in supporting appendices. Summarize your descriptive and concluding comments in the main body of the report. 1. Compute the number of calendar days needed to complete a one-acrejob using the current truckftrailer combination and the larger truckftrailer combination. Use the result to calculate the maximum number ofjobs McCoy could accept per year using each truckftrailer combination. Using the results from Question 1, compute the incremental annual revenues {cash flows) if McCoy invests in the larger truck and trailer. Use the model in case Exhibit 1 to compute incremental annual expenses {cash outflows] if McCoy invests in the larger truck and trailer. Determine incremental cash flows for the larger truck and trailer. Using the results from Question 2, prepare a spreadsheet modeling the initial investment and the incremental annual cash inflows and outflows for each of the next ve years. Use the incremental annual cash flows computed in question 3, together with other information in the case, to evaluate the investment in the larger truck and trailer. {Hint: Perform payback period, net present value, and internal rate of return. What would you recommend to McCoy regarding the goat rental operation
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