Compute npv and irr for truck, Mathematics

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Compute npv and irr for truck

Davis industries has to decide between a gas vs. electric powered forklift truck. The electric powered truck will cost $22,000 where as gas powered truck costs $17,500. The cost of capital is 12%. The life of both the trucks is 6 years. The net cash-flows from electric powered tuck will be $6,290 per year and $5,000 for the gas powered truck. The firm will choose only one of these trucks. Compute NPV and IRR for each truck and make your recommendation.

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Mathematics: Compute npv and irr for truck

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Mathematics: Compute npv and irr for truck

Reference No:- TGS0873167

Have a Question? (oR Write a Review)

Recent Questions Asked Mathematics

Q : Discuss what are excess cash reserves

Q : Explain which way would you purchase the magazine

Q : Determine the new rate of growth of per capita

Q : Discuss how old will you be before your loan balance exceeds

Q : Compute npv and irr for truck

Q : Determine the marginal cost of borrowing

Q : Explain how much office equipment can miro company buy

Q : Calculate the effective interest rate

Q : Discus how much could you afford to pay

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Request for Solution File

Ask an Expert for Answer!!

Mathematics: Compute npv and irr for truck

Reference No:- TGS0873167

Recent Questions Asked Mathematics

Q : Discuss what are excess cash reserves

Q : Explain which way would you purchase the magazine

Q : Determine the new rate of growth of per capita

Q : Discuss how old will you be before your loan balance exceeds

Q : Compute npv and irr for truck

Q : Determine the marginal cost of borrowing

Q : Explain how much office equipment can miro company buy

Q : Calculate the effective interest rate

Q : Discus how much could you afford to pay

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