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Bagwell Corporation is considering the purchase of a small fleet of trucks for its delivery operation. The invoice price of the trucks is $220,000;
Bagwell Corporation is considering the purchase of a small fleet of trucks for its delivery operation. The invoice price of the trucks is $220,000; sales tax on the purchase is $15,000; shipping and insurance related to delivery will cost another $6,000. The company expects that annual maintenance will cost $20,000, and annual insurance costs once in service will be $6,500. What amount should be used as the outlay at time-0-related to this investment?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
