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Please help. TIA --- --- Cullman Transport Company is considering investing in a truck that is expected to generate cash inflows of $34,000 per year.
Please help. TIA
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Cullman Transport Company is considering investing in a truck that is expected to generate cash inflows of $34,000 per year. The purchase price of the truck is $160,000. The expected life of the truck is 6 years and it has a salvage value of $38,000. Cullman has a required rate of return of 10 percent. Based on this information the net present value of this investment opportunity is (Use the and PVA of $1 tables) (Round intermediate and final answer to the nearest whole dollar.) Multiple Choice $9,529. $21,450. $148,079. $169,529. Glaze Manufacturing Company (GMC) is considering an opportunity to invest in a new piece of equipment. The equipment costs $57,000 with $37,000 due on the date of purchase and the remaining $20,000 due at the end of year three. The equipment is expected to have a 6 year useful life. GMC's accountant has developed the following cash flow information regarding the equipment. Assuming a required (desired) rate of return of 10\%, the net present value of this investment opportunity is (Use the PV of $1 and PVA of $1 tables) (Round intermediate and final answer to the nearest whole dollar.) Multiple Choice $35,050. $56,360. $91,410. $216,174. Miller Manufacturing company is considering the purchase of equipment. The equipment would cost $32,397.20 and is expected to generate annual cash inflows of $10,000 over its 4 year useful life. Based on this information, the internal rate of return for this investment opportunity is (Use the table) Multiple Choice 11%. 9% 7% 13%Step by Step Solution
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