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Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $51,000 on January 1,20Y1. The truck is expected to have a 5 -year

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Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $51,000 on January 1,20Y1. The truck is expected to have a 5 -year life with an expected residual value of $7,000 at the end of 5 years. The expected additional revenues from the added delivery capacity are anticipated to be $78,000 per year for each of the next 5 years. A driver will cost $55,000 in 20Y1, with an expected annual salary increase of $4,000 for each year thereafter. The annual operating costs for the truck are estimated to be $3,000 per year. Drocant Valua of t1 at Comnound Interest a. Determine the expected annual net cash flows from the delivery truck investment for 20y120y5

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