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Question 3 ) You are contemplating the purchase of delivery vehicles valued at $ 1 5 0 , 0 0 0 . The vehicles are

Question 3) You are contemplating the purchase of delivery vehicles valued at
$150,000. The vehicles are expected to remain in operation for 10 years, The
salvage value after 10 years is estimated at $15,000. The annual operating and
maintenance costs for the vehicles are projected to be $50,000. To expect an
18% rate of return on investment, what should be the required minimum annual
revenues?

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