Question: Compute present worth. thank you you used the wrong data. the revenue is 17000 a year not 20000 and the MARR is 7% not 8%.
Fink Co, is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will generate delivery revenue of $17.000 for each of the next 6 years. At the end of the 6 years, the vehicle will have a salvage value of $5.000. The tax rate is 21%. Assuming that the vehicle is depreciated using MACRS 5-year property class, and that Fink Co. uses an after-tax MARR of 7%, compute the PW. and determine whether Fink Co. should purchase the new business vehicle. Fink Co, is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will generate delivery revenue of $17.000 for each of the next 6 years. At the end of the 6 years, the vehicle will have a salvage value of $5.000. The tax rate is 21%. Assuming that the vehicle is depreciated using MACRS 5-year property class, and that Fink Co. uses an after-tax MARR of 7%, compute the PW. and determine whether Fink Co. should purchase the new business vehicle
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