Question: 3. Develop the influence diagram for this problem. Dave's Big Rig Truck Rental Company owns and rents out 50 trucks. It's for sale for $500,000.

 3. Develop the influence diagram for this problem. Dave's Big Rig

3. Develop the influence diagram for this problem. Dave's Big Rig Truck Rental Company owns and rents out 50 trucks. It's for sale for $500,000. You need to develop a fixeycat economic analysis to assist buyers in evaluating the company The market rate for truck rentals is currently S12,000 per truck per year. Big Dave has predicted rental based on price, it's shown below. Over the next five years, the price should remain stable. Other costs are identified. Base Percentage Cost to maintain the fleet $4,800 per truck rate of trucks rented | 62% | 70% 90% Fixed office cost $12,000 $10,800 60,000 (no expected increase) $35,000 (3% increase per year) taxes ert Maintenance costs | $4,800 (9% increase per year) Profits are subject to a 30% income tax, but tax is zero if no profit is earned. At the end of five years, it's assumed the buyer will resell the business and the price will be three times the gross revenue in the final year. Cash flow in the final year would include cash from the sale of the business. All trucks will be fully depreciated. Investors would like to see the cash flow for the business over the next five years, e.g. operating revenue, costs, taxes, etc. Investors would apply their own interest rate to determine NPV (net present value) of the investment. Print Layout ViewSec 1 Pages: 1 of 4 Words: 0 of 614

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