C12. A contractor gets revenue of $30,000 every year on the below earthmoving contract.

Buy a heavy-duty truck for $35,000, salvage is expected to be $3000 at the end of the vehicles 5-year MACRS depreciable life. Maintenance is $1000/year, monthly operating expenses are $1000.

Is it worth signing the contract? Justify. The expected RoR is 9%.