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please help with Requirements 1-4 on this practice problem!!! PA11-3 (Algo) Comparing, Prioritizing Multiple Projects [LO 11-1, 11-2, 11-3, 11-6] 6. Project 3: Purchase a
please help with Requirements 1-4 on this practice problem!!!
PA11-3 (Algo) Comparing, Prioritizing Multiple Projects [LO 11-1, 11-2, 11-3, 11-6] 6. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delvery trucks at a cost of 51 id 3.400 each. The fleet would heve a useful afe of 10 wears, and each truck would have a salvage value of $6,800 Purchasing the fleet would allow Hearne to expand its customer terntory, resulting in $245,000 of additional net income per year Required: 1. Determine each project's accounting rate of return 2. Delemine each project's payback period 3. Using a discount rate of 10 percent, calculate the net present value of each project 4. Determine the profitabity index of each project and proctize the projects for Hearne. Complete this question by entering your answers in the tabs below. Beouired : Eequired 3 Griermine each prejects accounting rate of return Step by Step Solution
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