Question 39

Your truck has a market value of $65,600. You can sell it to your brother, who agreed to buy it now and pay $81,800three years from now, or you can sell it to your cousin who agreed to pay you $71,700at the end of the year. To whom should you sell the truck if your cost of capital is9percent?(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 2 decimal places, e.g. 25.25.)

NPV (BROTHER) ?

NPV (COUSIN) ?

SELL TRUCK TO: BROTHER OR COUSIN