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Bobby Jones, the club pro at Pebble Beach Golf Club, is considering replacing his fleet of golf carts. He bought the existing fleet of 1
Bobby Jones, the club pro at Pebble Beach Golf Club, is considering replacing his fleet of golf carts. He bought the existing fleet of EZGO carts two years ago for $ per cart. He is considering replacing them with a new model Club Car. Each Club Car has GPS a cooler, and a ballclub cleaner and costs $ The golf carts are year property with depreciation rates of and in the first four years. If Mr Jones sold the EZGO carts today, he could get $ for each cart. One advantage of buying the new carts is that they are more durable and so he can carry a smaller inventory of spare parts. Bobby figures his inventory will drop by $ If Bobby goes ahead with the golf cart replacement, what are the initial cash flows? Assume a tax rate of Round your answer to the nearest dollar.
Bobby Jones, the club pro at Pebble Beach Golf Club, is considering replacing his fleet of golf carts. He bought the existing fleet of
EZGO carts two years ago for $ per cart. He is considering replacing them with a new model Club Car. Each Club Car has
GPS a cooler, and a ballclub cleaner and costs $ The golf carts are year property with depreciation rates of
and in the first four years.
If Mr Jones sold the EZGO carts today, he could get $ for each cart. One advantage of buying the new carts is that they are more
durable and so he can carry a smaller inventory of spare parts. Bobby figures his inventory will drop by $
If Bobby goes ahead with the golf cart replacement, what are the initial cash flows? Assume a tax rate of Round your answer to
the nearest dollar.
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