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The Box Company, is planning to purchase a truck for KD 152,000 that will have an estimated useful life of six years. The project will

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The Box Company, is planning to purchase a truck for KD 152,000 that will have an estimated useful life of six years. The project will produce an annual net cash inflows of KD 31,000, excluding the salvage value at the end of its useful life. The company uses a discount rate of 11% 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 = KD Salvage Value Required = KD

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