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Please give a detailed solution process. thank you Question 2 0/1 pts Laura wants to buy a delivery truck. The truck costs $86,000, and will
Please give a detailed solution process. thank you
Question 2 0/1 pts Laura wants to buy a delivery truck. The truck costs $86,000, and will allow her to increase her after tax profits by $19,000 per year for the next 10 years. She will borrow 81% of the cost of the truck for 10 years, at an interest rate of 7%. Laura's unlevered cost of capital is 16% and her tax rate is 33%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these terms? You Answered -740,307.3 Correct Answer 15,133.29 margin of error +/- 10 Question 2 0/1 pts Laura wants to buy a delivery truck. The truck costs $86,000, and will allow her to increase her after tax profits by $19,000 per year for the next 10 years. She will borrow 81% of the cost of the truck for 10 years, at an interest rate of 7%. Laura's unlevered cost of capital is 16% and her tax rate is 33%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these terms? You Answered -740,307.3 Correct Answer 15,133.29 margin of error +/- 10Step by Step Solution
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