Question: 1. You are choosing between two different vehicles for your pizza-delivery business. The more expensive one is also newer and more energy-efficient, so will have

 1. You are choosing between two different vehicles for your pizza-delivery

1. You are choosing between two different vehicles for your pizza-delivery business. The more expensive one is also newer and more energy-efficient, so will have lower gas costs, fewer repairs, and a larger salvage value when you sell it six years from now. The following are the cash flows for the two options: Year Altria Truckee 0 $4,500-$5,000 1 1,000 1,200 2 1,000 1,200 3 1,000 1,200 4 750 1,200 1,200 750 6 2,750 3,200 What is the internal rate of return you would earn on the additional $500 in cost associated with getting the Truckee instead of the Altria

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