A) If a company will pay $75,000 for a truck that will increase deliveries to be made which will give an additional $10,000 in revenue each year for 10 years, should the company buy it? Interest rates are 4%. Show your math. B) Now revenue is estimated to be only $8,000 a year for 10 Interest rates have risen to 5%, should the truck be purchased? Show your math.
A) If a company will pay $75,000 for a truck that will increase deliveries to be made which will give an additional $10,000 in revenue each year for 10 years, should the company buy it? Interest rates are 4%. Show your math. B) Now revenue is estimated to be only $8,000 a year for 10 Interest rates have risen to 5%, should the truck be purchased? Show your math.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13EB: Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for...
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A) If a company will pay $75,000 for a truck that will increase deliveries to be made which will give an additional $10,000 in revenue each year for 10 years, should the company buy it? Interest rates are 4%. Show your math.
B) Now revenue is estimated to be only $8,000 a year for 10 Interest rates have risen to 5%, should the truck be purchased? Show your math.
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