Business, 25.11.2019 23:31 dommalb

Net present value method

am express inc. is considering the purchase of an additional delivery vehicle for $55,000 on january 1, 2014. the truck is expected to have a five-year life with an expected residual value of $15,000 at the end of five years. the expected additional revenues from the added delivery capacity are anticipated to be $58,000 per year for each of the next five years. a driver will cost $42,000 in 2014, with an expected annual salary increase of $1,000 for each year thereafter. the annual operating costs for the truck are estimated to be $3,000 per year.

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Net present value method

am express inc. is considering the purchase of an additional de...

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