Business, 28.11.2019 06:31 kadinmorgan
Nancy’s notions pays a delivery firm to distribute its products in the metro area. delivery costs are $32,000 per year. nancy can buy a used truck for $8,000 that will be adequate for the next 5 years. operating and maintenance costs are estimated to be $22,000 per year. at the end of 5 years, the used truck will have an estimated salvage value of $5,000. nancy’s marr is 22%/year. what is the present worth of this investment? $
round entry to two decimal places. the tolerance is ±5.
what is the decision rule for judging the attractiveness of investments based on present worth?
should nancy buy the truck?
Answers: 1
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