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Urtego Transportation Company, Inc. is considering buying extra trucks that will cost $150,000 and will produce annual cash flows of approximately $50,000 for five years.
Urtego Transportation Company, Inc. is considering buying extra trucks that will cost $150,000 and will produce annual cash flows of approximately $50,000 for five years. The trucks are expected to be sold at the end of the five year period for $30,000. What is the net present value of the proposed investment? Urtego requires a 15% return on all capital investments.
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