Question #3. [20 pts] A coal mine owner is making a decision on two options: buying...
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Question #3. [20 pts] A coal mine owner is making a decision on two options: buying a new truck or renting a truck. A new truck costs 150,000 TL to purchase and 1 TL/ton of coal to operate. Rental trucks cost the company 5 TL/ton. One truck can transport 500,000 tpy. If the production of the company is 4,000,000 tpy, the operation time of the truck is 10 years, and the salvage value of the truck is 50,000 TL, which option should the investor choose? MARR=15%. Question #3. [20 pts] A coal mine owner is making a decision on two options: buying a new truck or renting a truck. A new truck costs 150,000 TL to purchase and 1 TL/ton of coal to operate. Rental trucks cost the company 5 TL/ton. One truck can transport 500,000 tpy. If the production of the company is 4,000,000 tpy, the operation time of the truck is 10 years, and the salvage value of the truck is 50,000 TL, which option should the investor choose? MARR=15%.
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To decide which option is more profitable for the coal mine owner we need to compare the net present ... View the full answer
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
Posted Date:
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