Question
Your company has five delivery trucks that are getting old and only have two years of useful life left in them. As they are
Your company has five delivery trucks that are getting old and only have two years of useful life left in them. As they are not fuel efficient and need a lot of repairs, they generate net cash flow for the firm of only $25,000 per year. Five new trucks will cost $250,000, but they will generate net cash flow for the firm of $75,000 per year for five years. At the end of five years they will no longer be usable and will have no value. If the appropriate risk adjusted discount rate is 8% what is the net present value of the project?
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Cost Accounting A Managerial Emphasis
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6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
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