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Kingbird corporation is considering purchasing a new delivery truck. the truck has many advantages over the company's current truck(not the least of which is that
Kingbird corporation is considering purchasing a new delivery truck. the truck has many advantages over the company's current truck(not the least of which is that it runs). the new truck would cost $55728. because if the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generated cost savings of $8100. At the end of eight years, the company will sell the truck for an estimated $27500. Traditonally, the company has used a general rule that it should not accept a proposal unless it has a payback period that is less tha 50% of the assest's estimated useful life. Donald Robinson , a new manager, has suggested that the company should not rely on the
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