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1 N WR years 0 1 3 revenues ZOK ROK ZOK Maintenance 4K 4K UK Dep% 20% 32% 19.2000 Depreciation 2 2. ? interest 1500

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1 N WR years 0 1 3 revenues ZOK ROK ZOK Maintenance 4K 4K UK Dep% 20% 32% 19.2000 Depreciation 2 2. ? interest 1500 1,024 19 524.59 Borrowed funds 30K investment salvage Isk Gain tax ? Principal paid 9516.26 9992.07 10,49167 Net CF 7 ? ? ? Figure the after tax cash flows and the missing info. A company buys a new delivery truck for 40,000 by paying cash of 10,000 and a loan of 30,000. the increased sales from using the truck per year are 20,000. maintenance costs are 4,000 per year. Income tax rate is 25%. Truck sells for 15,000 at 3 year end Figure the net present value for this project if the company marr is 15% Accept or reject investment project? Y/N

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