Novak Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life....
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Novak Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $35,000. Cost savings with this truck are expected to be $11,100 for the first two years, $7,600 for the following two years, and $2,800 for the last three years of the truck's useful life. What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.) Payback period years What is the discounted payback period for this project with a discount rate of 9 percent? (Round intermediate calculations to 5 decimal places, e.g. 0.42355. Round answer to 2 decimal places, e.g. 52.75.) Discounted payback period years Novak Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $35,000. Cost savings with this truck are expected to be $11,100 for the first two years, $7,600 for the following two years, and $2,800 for the last three years of the truck's useful life. What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.) Payback period years What is the discounted payback period for this project with a discount rate of 9 percent? (Round intermediate calculations to 5 decimal places, e.g. 0.42355. Round answer to 2 decimal places, e.g. 52.75.) Discounted payback period years
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no 41 L COST YEAR AMOUNT 1 2 3 4 5 6 7 35000 11100 11100 76... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Posted Date:
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