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Question 4 of 9 A delivery service feels they could increase their profits by purchasing a new truck for $57,000. This should lead to increased
Question 4 of 9 A delivery service feels they could increase their profits by purchasing a new truck for $57,000. This should lead to increased profits of $19,000 in the 1st year, $12,500 in the 2nd year, and $13,000 in the 3rd year. It could sell the truck at the end of 3 years for $12,500. a. If the company's required rate of return is 7.5% compounded annually, what is the Discounted Cash Flow (DCF) of the net returns? Round to the nearest cent b. Is this a worthwhile investment? a. Yes O b. No 1
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