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Milford Company wants to buy a new delivery truck and has narrowed its options to two choices. Both trucks cost $60,000. The following data shows
Milford Company wants to buy a new delivery truck and has narrowed its options to two choices. Both trucks cost $60,000. The following data shows the expected cash inflows from each truck: When calculating net present value, Milford uses the same cost of capital for both trucks and both trucks have a positive net present value. Based on this information, which statement is true? Truck 1 and Truck 2 will have the same internal rates of return. Truck 1 will have a lower net present value than Truck 2. Truck 1 and Truck 2 will have the same net present values. Truck 1 will have a higher net present value than Truck 2
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