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ome Opto Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an annual net cash flow of $100,000 per year
ome Opto Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an annual net cash flow of $100,000 per year for two years. The salvage value of the ambulance will be $25,000. Assume the ambulance is sold at the end of year 2. Calculate the NPV of the ambulance if the required rate of return is 9% (Round your answer to the nearest $1.) O A. $24,089 OB. $3,047 OC. $3,047 OD. $24,089 Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an annual net cash flow of $100,000 per year for two years. The salvage value of the ambulance will be $25,000. Assume the ambulance is sold at the end of year 2. Calculate the NPV of the ambulance if the required rate of retum is 9%. (Round your answer to the nearest $1.) O A. -$24,089 OB. $3,047 OC. $3,047 OD. $24,089
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