Real Greens Produce is starting home delivery of fresh produce via internet ordering. They analyzed both...

 

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Real Greens Produce is starting home delivery of fresh produce via internet ordering. They analyzed both a new and a used delivery van using incremental rate-of-return analysis, as shown in the tables below. The store manager is concerned about the new van salvage value data accuracy. Use sensitivity analysis, change the data by -$2000, -$1000, S0, $2000, $1000 to see if the decision changes, if MARR = 20%. DATA: Purchase cost Annual maintenance Salvage value New van Used van 22,000 $ 11,000 700 $ 2,000 10,000 $ 4,000 $ * new van maintenance stads after warranty expices Real Greens Produce is starting home delivery of fresh produce via internet ordering. They analyzed both a new and a used delivery van using incremental rate-of-return analysis, as shown in the tables below. The store manager is concerned about the new van salvage value data accuracy. Use sensitivity analysis, change the data by -$2000, -$1000, S0, $2000, $1000 to see if the decision changes, if MARR = 20%. DATA: Purchase cost Annual maintenance Salvage value New van Used van 22,000 $ 11,000 700 $ 2,000 10,000 $ 4,000 $ * new van maintenance stads after warranty expices

Answer rating: 100% (QA)

SOLUTION New van Annual Year Purchase maintenance Salvage Total cost 2... View the full answer