A local delivery company has purchased a delivery truck for


A local delivery company has purchased a delivery truck for $23,000. The truck will be depreciated under MACRS as a five-year property. The trucks market value (salvage value) is expected to decrease by $2,400 per year. It is expected that the purchase of the truck will increase its revenue by $20,000 annually. The O&M costs are expected to be $2,100 per year. The firm is in the 40% tax bracket, and its MARR is 13%. If the company plans to keep the truck only two years, what is the net present worth?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A local delivery company has purchased a delivery truck for
Reference No:- TGS02715204

Expected delivery within 24 Hours