The Box company, is planning to purchase a truck for 151,000 that will have an estimated useful life of nine years. The project will produce an annual net cash inflows of 30,000, excluding the salvage value at the end of its useful life. The company uses a discount rate of 14% for its capital budgeting decisions.

Required:

How large would the salvage value need to be to make the investment in the truck financially attractive?

Net present value to be offset=

Salvage value required=