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Q20) Cavalier supplics company recently purchased a new truck that cost $25,000. It's expected to gomerabe of & 7000 por year inemental cash flons a
Q20) Cavalier supplics company recently purchased a new truck that cost $25,000. It's expected to gomerabe of \& 7000 por year inemental cash flons a 5-year year. The truck has expected salvagye ved life. The axpected salvage value ofter tax adjustment for truck is $4.500 if the truck is sold after 4 years, The company's cost of capital is 10% What is the NPV of this project is the tryck is sold at the end of year 4 ? A) $262.62 B) $78,89
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