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Net present value method for a service company Coast - to - Coast Inc. is considering the purchase of an additional delivery vehicle for $
Net present value method for a service company
CoasttoCoast Inc. is considering the purchase of an additional delivery vehicle for $ on January The truck is expected to have a year life with an expected residual value of $ at the end of years. The expected additional revenues from the added delivery capacity are anticipated to be $ per year for each of the next years. A driver will cost $ in with an expected annual salary increase of $ for each year thereafter. The annual operating costs for the truck are estimated to be $ per year.
tablePresent Value of $ at Compound InterestYear
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