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Cullumber Manufacturers is considering investing in a new truck that will be used to deliver...

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Accounting

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Cullumber Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture. Gary Shop, Controller of Cullumber Manufacturers, is considering a truck which will cost $102400 and which has a useful life of 5 years. The new truck will save $12288 per year in operating costs which are realized at the end of each year. Gary believes if the new truck is purchased it could be sold for $82560 at the end of its useful life. Cullumber's required rate of return is 12%. What is the new truck's net present value? (round to the nearest dollar) \$-11259 $.9860 $.8710 $22148

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