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Can sombody help me with this problem? Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be
Can sombody help me with this problem?
Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully. depreciated vans, which you think you can sell for $4.900 a plece and which you could probably use for another 2 years if you chose not to reploce them. The NV vans wII cost $48,000 each in the configuration you want them, and can be depreciated using MACRS over a 5 -year life, but you are unable to make use of elther bonus depreciation or Section 179 expensing. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $5,600 each. If your cost of capital is 10 percent and your firm faces a 21 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) Step by Step Solution
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