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Lionel purchased two trucks for his warehouse for a total of $53,000. This investment saved him $16,000 every year for 11 years. At the end

Lionel purchased two trucks for his warehouse for a total of $53,000. This investment saved him $16,000 every year for 11 years. At the end of year 11, he sells both the trucks for a total of $10,000.

a.What is the Net Present Value (NPV) of the investment if the required rate of return is 6%?

b.Does the investment meet the required rate of return?

Yes

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