Detritus Services Pty Limited is also deciding on whether or not to purchase a fully fitted mobile cleaning service truck do their increased work resulting from the COVID infections.

The following costs would need to be considered: Initial cost of the Truck Expected Residual Value after 4 years $ 65,000 $ 8,000 Expected Net Cash inflows from additional work they could accept: Year 1 $15,000 Year 2 $20,000 Year 3 $19,000 Year 4 $15,000 Detritus Services Pty Limited has a required rate of return of 10%.