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faaaaast faaaaast Rebek vahe Ow Ana sherg 536.00 120.000 Salvative years from now) 512.000 $10.000 If the company keeps and has its old delivery truck
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Rebek vahe Ow Ana sherg 536.00 120.000 Salvative years from now) 512.000 $10.000 If the company keeps and has its old delivery truck curly in the he will be able for five years in with other. The ww truck would be copied, multing in metallici in perigos The company computer depreciation on a straight-line besls All investment projects are waiting Ow the Required What is the best value of the hep the oldbruckt? 2. What is the new value of the the way Stallypermarkt keep the truck or purchase the wewe Why EVULD old Truck New Truck Purchase cost (new) $38,000 $51,000 Remaining book value $26,000 Overhaul needed now $25,000 Annual cash operating costs $20,000 $18,500 Salvage value (now) $15,000 Salvage value (five years from now) $12,000 $10,000 If the company keeps and overhauls its old delivery truck currently in use, then the truck will be in with another truck. The new truck would be diesel-operated, resulting in a substantial reduction The company computes depreciation on a straight-line basis. All investment projects are evaluated Required: If the company keeps and overhauls its old delivery truck currently in use, then the truck will be us in with another truck. The new truck would be diesel-operated, resulting in a substantial reduction is The company computes depreciation on a straight-line basis. All investment projects are evaluated Required: 1. What is the net present value of the "keep the old truck" alternative? 2. What is the net present value of the "purchase the new truck" alternative? 3. Should Lulu Hypermarket keep the old truck or purchase the new one? Why Step by Step Solution
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