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QUESTIONS You are considering the purchase of a new bulldozer at a cost of $250.000 You expect the door to generate average revenues of $4.000

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QUESTIONS You are considering the purchase of a new bulldozer at a cost of $250.000 You expect the door to generate average revenues of $4.000 per month Average operating costs will be $1,000 per month and there is an annual service that will cost $3.000. You expect to keep the dorer for 10 years at which time it should sell $75,000 a) When you draw a cash flow diagram, what is the net value i.e., sum) of the cash flows that occur at year 0? b) When you draw a cash flow diagram, what is the net value (le, sum) of the cash flows that occur at year 10? c) What is the Rate of Return (%) or this investment? d) If your MARR is 6%, is this an acceptable purchase based on the economic analysis - Yes or No

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