Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

question involving finance i already solved the question please disregard this problem For some years, Mel has contracted with several major pizza retallers for home

question involving finance
image text in transcribed
i already solved the question please disregard this problem
For some years, Mel has contracted with several major pizza retallers for home delivery services. He uses a MARR of 12% per year in all business dealings. His current van, purchased 10 years ago for $75,000, can be used for 3 more years, with an AOC of $23,000 and an estimated $25,000 trade-in value. A better-equipped van will cost $120,000, have an economic life of 6 years, an estimated tradein value of $45,000, an AOC of $32,000 per year, and will generate an estimated $31,000 per year additional reveriue, On the basis of these estimates, what market value now for the current van will make the new van equally artractive? Solve by spreadsheet or factors. as requested by your instructor. On equating the AW values of the current van and the new van, to calculate the market value now for the current van, the spreadsheet tool that should be used is The market value now for the current van that will make the new van equally attractive will be $ For some years, Mel has contracted with several major pizza retallers for home delivery services. He uses a MARR of 12% per year in all business dealings. His current van, purchased 10 years ago for $75,000, can be used for 3 more years, with an AOC of $23,000 and an estimated $25,000 trade-in value. A better-equipped van will cost $120,000, have an economic life of 6 years, an estimated tradein value of $45,000, an AOC of $32,000 per year, and will generate an estimated $31,000 per year additional reveriue, On the basis of these estimates, what market value now for the current van will make the new van equally artractive? Solve by spreadsheet or factors. as requested by your instructor. On equating the AW values of the current van and the new van, to calculate the market value now for the current van, the spreadsheet tool that should be used is The market value now for the current van that will make the new van equally attractive will be $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions