Question: it is Current Attempt in Progress Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will generate delivery revenue
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Current Attempt in Progress Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will generate delivery revenue of $20,000 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 8%, compute the PW, and determine whether Fink Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is \pm 10 . Should Fink Co. purchase the new business vehicle? eTextbook and Media Hint Assistance Used Construct a table that considers the BTCF and depreciation allowances to allow you to compute the after-tax cash flows used to calculate the PW
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