Brea purchases a Tesla Truck for $120,000. The truck declines in value by 20%of...
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Accounting
Brea purchases a Tesla Truck for $ The truck declines in value by of the current value each year. The initial operating cost for Year is $ which increases by $ each year. MARR is a Determine the EAC capital costs if the truck is used for one year. b Determine the EAC capital costs if the truck is used for five years. c If you only have the option of using the equipment for one year OR for five years, which option do you choose? Why? Tip: Sketch the cash flow diagram for part a and part b
Brea purchases a Tesla Truck for $ The truck declines in value by of the current value each year. The initial operating cost for Year is $ which increases by $ each year. MARR is
a Determine the EAC capital costs if the truck is used for one year.
b Determine the EAC capital costs if the truck is used for five years.
c If you only have the option of using the equipment for one year OR for five years, which option do you choose? Why? Tip: Sketch the cash
flow diagram for part
a and part b
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