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Time line; payback; NPV Austin Audio Systems is considering the purchase of a new delivery truck to replace an existing unit. The truck would cost
Time line; payback; NPV Austin Audio Systems is considering the purchase of a new delivery truck to replace an existing unit. The truck would cost $ and would have a life of seven years with no salvage value. The existing truck could be sold currently for $ but if is kept, it will have a remaining life of seven years with no salvage value. By purchasing the truck, Austin Audio Systems' managers would anticipate operating cost savings as follows: tableYearAmountdotsdotsdots,$
Time line; payback; NPV Austin Audio Systems is considering the purchase of a new delivery truck to replace an existing unit. The truck would cost $ and would have a life of seven years with no salvage value. The existing truck could be sold currently for $ but if is kept, it will have a remaining life of seven years with no salvage value. By purchasing the truck, Austin Audio Systems' managers would anticipate operating cost savings as follows:
tableYearAmountdotsdotsdots,$
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