As a Shareholder of a Construction firm, it has been decide by the board to purchase a new 18 wheeler truck that is worth $60000. The vehicle will have $18000 annual expenses which will immediately begin a year after purchasing it. Referring to the cash flow diagram below, what will be the net Future Worth of buying the truck ?
As a Shareholder of a Construction firm, it has been decide by the board to purchase a new 18 wheeler truck that is worth $60000. The vehicle will have $18000 annual expenses which will immediately begin a year after purchasing it. Referring to the cash flow diagram below, what will be the net Future Worth of buying the truck ?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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As a Shareholder of a Construction firm, it has been decide by the board to purchase a new 18 wheeler truck that is worth $60000. The vehicle will have $18000 annual expenses which will immediately begin a year after purchasing it. Referring to the cash flow diagram below, what will be the net Future Worth of buying the truck ?
Transcribed Image Text:PROBLEM SOLVING 2/4
READ: SHOW COMPLETE SOLUTION INCLUDING THE (1) CASH FLOW DIAGRAM IF NOT GIVEN, (2) FORMULA
FUNCTION, (3) FORMULA, (4) VALUES OF FACTORS, UP TO 4 DECIMAL DIGITS, (5) FINAL ANSWER IS BOXED
AND ROUNDED OFF TO 2 DECIMAL DIGITS AND (6) RECOMMENDATION IS BOXED. FAILURE TO DO ANY OF THE
ABOVE MENTIONED WILL CAUSE YOU 3-POINT DEDUCTION EACH VIOLATION, AS NOT FOLLOWING
INSTRUCTIONS.
As a shareholder of a Construction firm, it has been decided by the Board to purchase a new 18-
wheeler truck that is worth $60,000. The vehicle will have $18,000 annual expense which will
immediately begin a year after purchasing it. Referring to the Cash Flow Diagram below, what will be
the Net Future Worth of buying the truck?
Salvage Value = $6,000
Annual Revenue= $24,000
0 1
3
4 5 6
7 8
9 10 11 12
MARR=10%
G=$400
P= $60,000
><
2.
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