Calculation of NPV :-
Year | Cash Inflows | Present value factor @ 8% | Present value |
A | B | A x B | |
0 | - 55,100 | 1 | - 55,100 |
1 | 8,600 | 0.92593 | 7,963 |
2 | 8,600 | 0.85734 | 7,373 |
3 | 8,600 | 0.79383 | 6,827 |
4 | 8,600 | 0.73503 | 6,321 |
5 | 8,600 | 0.68058 | 5,853 |
6 | 8,600 | 0.63017 | 5,419 |
7 | 8,600 | 0.58349 | 5,018 |
8 | 8,600 + 28,300 | 0.54027 | 19,936 |
Net Present Value | $9,610 |
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Linkin Corporation is considering purchasing a new delivery truck....
ent CALCULATOR FULL SCREEN Exercise 24-1 PRINTER VERSSION BACK Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would c $56,000. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of s8,400, At the end of 8 years the company will sell the truck for an...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $54,760. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,400. At the end of 8 years, the company will sell the truck for an estimated $27,000. Traditionally the company has used a rule...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company’s current truck (not the least of which is that it runs). The new truck would cost $56,800. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,000. At the end of 8 years, the company will sell the truck for an estimated $27,700. Traditionally the company has used a rule...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $56,900. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,400. At the end of 8 years the company will sell the truck for an estimated $28,400. Traditionally the company has used a rule...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $55,100. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,400. At the end of 8 years the company will sell the truck for an estimated $27,700. Traditionally the company has used a rule...
PINTER VERSION BACK NEXT Exercise 13.14 ab Dobbs Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that runs). The new truck would cost $55.728 Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,100. At the end of eight years, the company will sell the truck for an estimated $27,500. Traditionally,...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company’s current truck (not the least of which is that it runs). The new truck would cost $56,760. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,600. At the end of 8 years, the company will sell the truck for an estimated $28,600. Traditionally the company has used a rule...
Exercise 26-1 Linkin Corporation is considering purchasing a new delivery truck. There has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $56,000. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of 38,300. At the end of years the company will sell the truck for an estimated $27,900. Traditionally the company has used a rule...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $57,500. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,300. At the end of 8 years the company will sell the truck for an estimated $28,800. Traditionally the company has used a rule...
Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $57,300. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $7,500. At the end of 8 years the company will sell the truck for an estimated $28,100. Traditionally the company has used a rule...