Question: The managers at Jackson Company were considering purchasing a new delivery truck.The new truck will generate net cash flows as shown below.If Jackson uses an

The managers at Jackson Company were considering purchasing a new delivery truck.The new truck will generate net cash flows as shown below.If Jackson uses an 8% discount rate, what is the most Jackson should spend to purchase the new truck?

Year 1:$7,200

Year 2:$9,600

Year 3:$14,400

Year 4:$9,600

Year 5:$12,000

A
:
$42,166
B
:
$52,800
C
:
$140,604
D
:
$41,556

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