Question: Here's my attempt, please explain what i'm missing and where I messed up B Intro Your company needs to buy a new truck. You've narrowed

 Here's my attempt, please explain what i'm missing and where I

Here's my attempt, please explain what i'm missing and where I messed up

messed up B Intro Your company needs to buy a new truck.

B Intro Your company needs to buy a new truck. You've narrowed the selection to a choice between Daimler (Mercedes-Benz) and Navistar. A D 1 Truck Daimler Navistar 2 Initial cost 300,000 200,000 3 Fixed costs 8,000 12,000 annual 4 Cost per mile 0.12 0.18 5 Life span 8 years 6 Salvage value 0 0 in year 8 Whichever truck you buy, it will be driven 60,000 miles per year Your discount rate is 12% and your marginal tax rate is 21%. 8 Attempt 1/10 for 10 pts. Part 1 What is the NPV of the Daimler truck? 438402 Try again Try again See solution 60000 0.12 0.21 Daimler 300000 8000 0.12 8 0 Miles per year Discount Rate Tax rate Truck Initial cost Fixed cost Cost per mile life san salvage value Total Miles driven Variable Cost Depreciation Total Fixed cost EBIT Taxes Depreciation Cash Flow NPV 480000 -57600 -37500 -64000 -159100 -33411 37500 - 155011 ($438,402.68)

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