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MARR is 12% Truck B Truck A $60,000 $40,000 Initial Investment $12,000 Annual Profit $10,000 $10,000 Salvage Value $8,000 14 years 10 years Useful Life
MARR is 12% Truck B Truck A $60,000 $40,000 Initial Investment $12,000 Annual Profit $10,000 $10,000 Salvage Value $8,000 14 years 10 years Useful Life Using the cotermination assumptions, the present worth method, and a study period of 10 years, answer the following questions: a) What is the imputed market value of Truck B at the end of the 10-year study period? b) What is the present worth of Truck A? c) What is the present worth of Truck B? d) Which truck, if any, should your company choose to buy? a) What is the imputed market value of Truck B at the end of the 10-year study period? $I (Round to the nearest dollar - no decimal places. If you get a negative number, include the negative sign.) b) What is the present worth of Truck A? $ (Round to the nearest dollar - no decimal places. If you get a negative number, include the negative sign.) c) What is the present worth of Truck B? (Round to the nearest dollar - no decimal places. If you get a negative number, include the negative sign.) %24 d) Which truck, if any, should your company choose to buy? A. Truck A B. Truck B C. Neither Click to select your answer(s). Truck B Truck A $60,000 $40,000 Initial Investment $12,000 Annual Profit $10,000 $10,000 Salvage Value $8,000 14 years 10 years Useful Life Using the cotermination assumptions, the present worth method, and a study period of 10 years, answer the following questions: a) What is the imputed market value of Truck B at the end of the 10-year study period? b) What is the present worth of Truck A? c) What is the present worth of Truck B? d) Which truck, if any, should your company choose to buy? a) What is the imputed market value of Truck B at the end of the 10-year study period? $I (Round to the nearest dollar - no decimal places. If you get a negative number, include the negative sign.) b) What is the present worth of Truck A? $ (Round to the nearest dollar - no decimal places. If you get a negative number, include the negative sign.) c) What is the present worth of Truck B? (Round to the nearest dollar - no decimal places. If you get a negative number, include the negative sign.) %24 d) Which truck, if any, should your company choose to buy? A. Truck A B. Truck B C. Neither Click to select your answer(s)
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