Go Logistics, a small logistics company is planning to invest in a fleet of delivery vehicles for

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Go Logistics, a small logistics company is planning to invest in a fleet of delivery vehicles for $640,000; each vehicle is considered MACRS 5-year property. Go Logistics estimates that their fleet of delivery vehicles will generate additional revenue of $135,000 per year; they plan to operate their fleet for 4 years. After 4 years, the delivery fleet would have a salvage value of $90,000. The tax rate is 22%, the delivery vehicles are eligible for a Section 179 deduction, and Go Logistics uses an after-tax MARR of 9%. Compute the PW and determine whether the business should invest in the delivery vehicles.

Posted Date: Nov 26, 2021 02:53 PM

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Go Logistics, a small logistics company is planning to invest in a fleet of delivery vehicles for

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Year n 0 2 3 4 Additional revenue 135000 135000 135000 135000 1152 576 MARCS ... View the full answer

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