Question: Robinson Co . is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $
Robinson Co is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $ and generate delivery revenue of $ for each of the next years. If Robinson Chases the vehicle, it will take a loan for $ The terms of the loan stipulate that, annual interest would be charged and that the loan would be repaid in equal end of year payments. At the end of the years, the vehicle will have a salvage value of $ The tax rate is Assuming that the vehicle is depreciated using MACRS year property class and that Robinson Co uses an aftertax MARR of compute the PW and determine whether Robinson Co should purchase the new business vehicle.
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