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Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $43,000 on January...

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Accounting

Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $43,000 on January 1, 20Y1. The truck is expected to have a 5-year life with an expected residual value of $5,000 at the end of 5 years. The expected additional revenues from the added delivery capacity are anticipated to be $74,000 per year for each of the next 5 years. A driver will cost $53,000 in 20Y1, with an expected annual salary increase of $4,000 for each year

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