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MSB Trucking Corporation is planning to purchase a new truck at a cost of $ 1 0 0 , 0 0 0 . The increased
MSB Trucking Corporation is planning to purchase a new truck at a cost of $ The increased business from this investment will increase the revenue of the company by $ per year for the next six years. All costs to operate the truck including taxes will be $ each year. At the end of the six years, the truck will be sold to a junk yard to net $ after taxes. The company\'s cost of capital is percent. The level of risk of sales from this truck is the same as the overall risk for the company. What is the NPV of this truck purchase decision?
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1 Calculate Annual Cash Flows Year 0 Initial cost of the truck 100000 Investment Year 16 Increased r...Get Instant Access to Expert-Tailored Solutions
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