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Flint Growth Farms, a farming cooperative. is considering purchasing a tractor for $568,380. The machine has a 10 -year life and an estimated salvage value
Flint Growth Farms, a farming cooperative. is considering purchasing a tractor for $568,380. The machine has a 10 -year life and an estimated salvage value of $56,000. Delivery costs and set-up charges will be $14,100 and $440, respectively. Flint Growth uses straight-line depreciation and has a required rate of return of 9%. Flint Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $440. Fuel is $60 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766 . Click here to view PV tables. Net present value
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