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The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate nex are given below.
The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate nex are given below. The company's cost of capital is 8 percent. a. What is the optimal number of years to operate the truck? Do not round intermediate calculations. Round your answers to the nearest years b. Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project? I. No. Salvage possibilities could only raise NPV and IRR. II. Yes. Salvage possibilities could only lower NPV and IRR. III. Salvage possibilities would have no effect on NPV and IRR
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