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Smith Industries is purchasing a fleet of trucks for $105,000 and, in addition, will pay $5,000 to ship the trucks to its main location. The
Smith Industries is purchasing a fleet of trucks for $105,000 and, in addition, will pay $5,000 to ship the trucks to its main location. The trucks will have d = 30%, a useful life of 3 years, and a SV of $10,000 at the time of sale. Incremental cash inflows and outflows are $80,000 and $20,000 per year, respectively. T = 40% and k = 14%. Should the fleet be purchased?
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