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Can someone help me with 12 to 18 UESTIONS 12 to 18 A firm is considering the purchase of a truck for $200,000 fully installed.
Can someone help me with 12 to 18 UESTIONS 12 to 18 A firm is considering the purchase of a truck for $200,000 fully installed. t is expected to last 3 years with a salvage value of S50,000 at that time Annual revenues are expected to be $300,000 in the first year and to grow thereafter at an annual rate of 5% Annual operating and maintenance costs are expected to be $100,000 in the first year and to grow thereafter at an annual rate of 3% 1. Depreciate the truck using the DB method (d=25%) 2. The half-year rule does not apply 3. The before-tax with inflation interest rate is 20% 4. The before-tax inflation-free interest rate is 15% 5. The after-tax with inflation interest rate is 10%. 6. The after-tax inflation-free interest rate is 5% 7. Inflation is 5% annually 8. The tax rate-50% The firm gets a $100,000 loan (at a 10% rate of interest) which is repaid as follows Loan Repayment at End of Year Percentage of Loan Repaid 20% 30% 50%
Can someone help me with 12 to 18
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