Question

The Parish County government supervisors are considering the purchase of a small, used airplane to save on travel costs. The plane will cost $400,000 and can be sold in 5 years for 20% of the original cost.

REQUIRED
If 10% is the required rate of return, what minimum annual savings in transportation costs are needed for this plane to be a good investment?



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  • CreatedJanuary 26, 2015
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