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Laura wants to buy a delivery truck. The truck costs $ 8 3 , 0 0 0 , and will allow her to increase her
Laura wants to buy a delivery truck. The truck costs $ and will allow her to increase her after tax profits by $ per year for the next years. She will borrow of the cost of the truck for years, at an interest rate of Lauras unlevered cost of capital is and her tax rate is The loan includes a $ application fee. What is the NPV of buying the truck on these terms? Please use the APV method.
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