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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 $

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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 $36,000 on January 1,20Y1. The truck is expected to have a 5-year life with an expected residual value of $5,000 at the end of 5 years. The expected additional revenues from the added delivery capacity are anticipated to be $53,000 per year for each of the next 5 years. A driver will cost $37,000 in 20Y1, with an expected annual salary increase of $3,000 for each year thereafter. The annual operating costs for the truck are estimated to be $2,000 per year.
\table[[Present Value of $1 at Compound Interest],[Year,6%,10%,12%,15%,20%
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