Cullman Transport Company is considering investing in a truck that is expected to generate cash inflows of $30,000 per year. The purchase price of the truck is $142,000. The expected life of the truck is 5 years and it has a salvage value of $32,000. Cullman has a required rate of return of 6 percent. Based on this information the net present value of this investment opportunity is (Use the PV of $1 and PVA of $1 tables and round your answer to the nearest whole dollar.)
a) $8,283.
b) $23,912.
c) $126,371.
d) $150,283.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Cullman Transport Company is considering investing in a truck that is expected to generate cash inflows of $30,000 per year. The purchase ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
From an economic context, select the correct definition of a market.
Answers (1)
If buyers become reluctant to purchase high-quality goods because they can't be confident of purchasing a high-quality product, then A. a large number of buyers will communicate the need for lower prices. B.
Answers (1)
Classifying Types of Adjustments Classify the following items as (a) prepaid expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense: 1. A two-year premium paid on a fire insurance policy. 2. Fees earned but not yet received. 3.
Answers (1)
In 3-5 sentences, describe how a consumer can use a cost-benefit analysis to decide between buying a concert ticket or buying a new pair of jeans. Mention the steps involved in analyzing each choice and how this process results in a decision.
Answers (1)
12. A freeze in Peru causes the price of coffee to skyrocket. Assuming coffee and tea are substitutes, which of the following will happen? [A] The quantity demanded of coffee will increase, and the quantity demanded of tea will increase.
Answers (1)
New Questions in Business
Video quiz the story in the video describes how the ceo of japan airlines, haruka nishimatsu, serves as an example of
Answers (1)
Granting a foreign company the right to manufacture your product your product or to use your firm's trademark in return for a fee is called:
Answers (1)
The paranting style which takes the concerns of all family members into account when making decisions is
Answers (1)
At the beginning of the year, Novak had an inventory of $550000. During the year, the company purchased goods costing $2340000.
Answers (1)
In presidential elections, voters often find that they do not agree with any single candidate in all issues that matter to them this is known as a. rent seekingbehaviorb. lack of accountabilityc. principal agent problemd.
Answers (1)