Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please explain! You are working for a shipping company and consider buying a new truck. The price of the truck is EUR 36,000. Maintenance cost
Please explain!
You are working for a shipping company and consider buying a new truck. The price of the truck is EUR 36,000. Maintenance cost are EUR 328 per year. Annual Fuel cost are estimated to be EUR 1,882 and the insurance premium for the truck will be EUR 98 per year. The truck is going to be used for the next 5 years. You are unsure about the revenue prospects and have identified two scenarios. Scenario t=1 t=2 t=3 t=4 t=5 Good 16,000 20,000 19,000 16,000 22,000 Bad 13,000 8,000 11, 000 9,000 10,000 The chance for the good scenario to realize is 30%. What are the expected cash flows of the truck over the next 5 years? Select one: a. 33692, 692,9692,5692,4692, 9692 b. 33692, 11592, 9292, 11092,8792, 11292 C. 36000, 2492, 3692,3392, 2492, 4292 X False. d. 36000, 692,9692,5692, 4692,9692 e. 36000, 11592, 9292, 11092, 8792, 11292 a. False. b. False. C. False. d. False. e. True. The correct answer is: 36000, 11592, 9292, 11092, 8792, 11292Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started