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Blossom Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture. James Shop. Controller of Blossom Manufacturers,
Blossom Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture. James Shop. Controller of Blossom Manufacturers, is considering a truck which will cost $64000 and which has a useful life of 5 years. The new truck will save $7680 per year in operating costs which are realized at the end of each year. James believes if the new truck is purchased it could be sold for $51600 at the end of its useful life. Blossom's required rate of return is 12%. Type of cash flow Periods Interest rate Factor PV of $1 5 12% 0.5674 FV of $1 5 12% 1.7623 PV ordinary annuity 5 12% 3.6048 FV ordinary annuity 5 12% 6.3528 PV annuity due 5 12% 4.0374 What is the new truck's net present value? (round to the nearest dollar) $-6162 O $-7037 $--5444 O $13842 eTextbook and Media
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