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Jerry wants to buy a new delivery truck for his business. The truck will cost $30,000. It is expected to generate net after-tax operating cash
Jerry wants to buy a new delivery truck for his business. The truck will cost $30,000. It is expected to generate net after-tax operating cash flows of $9,750 per year. The MARR is 15%. Given that the truck has a five year expected life and the salvage values for years 1 through 5 are $25,000, $21,000, 17500, 10,000, and $0 respectively, what is its optimal economic life?
a)3 years
b)5 years
c)1 years
d)4 years
e)2 years
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