A geological exploration company is considering the purchase of a new all-terrain vehicle that will...
60.1K
Verified Solution
Link Copied!
Question
Finance
A geological exploration company is considering the purchase of a new all-terrain vehicle that will cost $80,000. The vehicle is expected to have a service life of 3 years, after which its expected salvage value is $25,000. The vehicle is expected to generate an estimated $45,000 per year in revenue for exploration services. Annual costs of running and maintaining the vehicle are expected to be $5,000 in the first year, increasing by $1000 in each subsequent year. The companys MARR is 12%. Ignoring any impacts of depreciation or taxes, what is the NPV for the project?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.