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show formulas please Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $60,000 and will generate constant-dollar delivery revenue of $21,000
show formulas please
Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $60,000 and will generate constant-dollar delivery revenue of $21,000 (year O dollars) for each of the next 6 years. At the end of the 6 years, the vehicle will have a salvage value of $8,000. The tax rate is 21%, and annual inflation is 4%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Fink Co.uses an after-tax real interest MARR of 7%, compute the PW, and determine whether Fink Co. should purchase the new business vehicle Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. Use a minus sign to enter your answer, if any. The tolerance is $10.00 Should Fink Co. purchase the delivery vehicleStep by Step Solution
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