It is being contemplated by a company with a cost of capital of 10.0% that they will invest in a project that will yield £100,000 within 5 years of investing in it. In addition to this return, the inflation rate is expected to average 3.0% per annum over the next 5 years. Therefore, this result is expected to be net of inflation. 

Can you tell me what the PV of the project is?

A building company has a fleet of trucks that are all 2 years old that will work acceptably for another 3 years. They have received a bid from a dealer to replace this fleet of trucks with new trucks that have the same capacity, but lower operating costs, that will work acceptably for 5 years. Should the company replace its fleet of trucks now? Price of trucks brand new Market value of 2 year old trucks Market value of 5 year old trucks Annual Operating Cost ($) Discount rate Old truck 70,000 50,000 5,000 4.000 10% New Truck 80,000 60,000 6.000 3,000 10%