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Question 6 (3 points) Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $85 million, and
Question 6 (3 points) Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $85 million, and will produce net cash flows of $37 million per year. Inflation in operating costs and battery costs is expected to be zero, and the company's cost of capital is 12%. What is the equivalent annual annuity for the R1T assembly? Answer in whole number (i.e. $1,034.42 as 1,034)
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