Business, 03.04.2021 01:00 coollid876
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 $13,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $21,000 per year. At the end of 3 years, the used truck will have an estimated salvage value of $2,000. Nancy's MARR is 34%/year.
a. What is this investment's internal rate of return? IRR = J% Do all calculations to 5 decimal places and round final answer to the whole number. The tolerance is +/- 1.
b. What is the decision rule for judging the attractiveness of investments based on internal rate of return?
c. Should Nancy buy the truck?
Answers: 2
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Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs ar...
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