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Number 9 please Search this book My highlight they purchase a new vehicle, they will sell the existing one and use the new vehicle for
Number 9 please
Search this book My highlight they purchase a new vehicle, they will sell the existing one and use the new vehicle for 5 years and then trade it in for another new pizza delivery vehicle. If they trade for the new delivery vehicle, their operating expenses will decrease because the new vehicle is more gas efficient. This project is analyzed using a discount rate of 15%. What should D&M do? PB9. LO 11.4 Joliet Company is considering two alternative investments. The company requires an 18% return from its investments. Project X $108,000 Project Y $98,000 Initial investment Net cash flows anticipated: Year 1 Year 2 Year 3 Year 4 Year 5 36,000 39,000 32,000 34,000 25,000 25,000 45,000 42,000 28,000 17,000 Compute the IRR for both Projects and recommend one of them. For further instructions on internal rate of return In Excel, see Appendix C. PB10. LO 11.5 Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce annual net cash flows of $21,950 for 8 years. The required rate of return 6% Compute the net present value of this investment to determine whether Bouvier should invest in the grill .Step by Step Solution
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