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Question: Using a discount rate of 10 percent, please calculate the net present value of each project. Project 3: Purchase a New Fleet of Delivery

Question: Using a discount rate of 10 percent, please calculate the net present value of each project.

Project 3: Purchase a New Fleet of Delivery Trucks

Hearne could purchase 25 new delivery trucks at a cost of $115,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $5,000. Purchasing the fleet would allow Hearne to expand its customer territory resulting in $200,000 of additional net income per year.

NPV=?

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