Question: Net Present Value Method for a Service Company AM Express Inc. is considering the purchase of an additional delivery vehicle for $55,00 on January 1,

 Net Present Value Method for a Service Company AM Express Inc.
is considering the purchase of an additional delivery vehicle for $55,00 on

Net Present Value Method for a Service Company AM Express Inc. is considering the purchase of an additional delivery vehicle for $55,00 on January 1, 20Y1. The truck is expected to have a five-year life with an expected residual value of $15,000 at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $58,000 per year next five years. A driver will cost $42,000 in 20Y1, with an expected annual salary Increase of $1,000 for each year thereafter. The annual operating costs for the truck arne estimated to be $3,000 per year Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0567 0.4970.402 6 0.705 0.564 07 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 40 0.327 0.233 90.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0322 0.247 0.162 a. Determine the expected annual net cash flows from the delivery truck investment for 20Y-20Ys Annual Net Cash Flow 20Y1 20Y2 20Y3 20Y4

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