2)A company makes an investment in a new delivery van costing $47,000 and is expected to have...
Question:
2) A company makes an investment in a new delivery van costing $47,000 and is expected to have a service life of 200,000 miles at an annual usage of 40,00 miles per year. The delivery service is expect to generate the following profits:
$15K, in odd years and, - $20K, in even years, and the project is evaluated at a rate of 6%,
- What is the present value of this investment?
- What is the annual equivalent?
n In Out
0 30000
1 40000 15000
2 40000 15000
3 40000 15000
4 40000 15000
5 40000+3000
What is the Present value of the cash flow above
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan