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Net present value method for a service company a. Determine the expected annual net cash...

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Accounting

Net present value method for a service company a. Determine the expected annual net cash flows from the delivery truck investment for 20Y1-20Y5.
Annual Net Cash Flow
dollar. If required, use the minus sign to indicate a negative net present value.
Present value of annual net cash flows
$
Investment
Net present value
$
c. Is the additional truck a good investment based on your analysis?
, because the net present value is
increase of $4,000 for each year thereafter. The annual operating costs for the truck are estimated to be $3,000 per year.
Present Value of $1 at Compound Interest
a. Determine the expected annual net cash flows from the delivery truck investment for 20Y1-20Y5.
Annual Net Cash Flow
dollar. If required, use the minus sign to indicate a negative net present value.
Present value of annual net cash flows
Investment
image

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