Calculate the NPV of the ambulance

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Reference no: EM13952154

Fitchminster Armored Car can purchase a new vehicle for $200,000 that will provide annual net cash flow over the next five years of $40,000, $45,000, $50,000, $55,000, $60,000. The salvage value of the vehicle will be $25,000. Assume that the vehicle is sold at the end of year 5. Calculate the NPV of the ambulance if the required rate of return is 9%. (Round your answer to the nearest $1.)

A) $7,390

B) $6,048

C) $6,780

D) 19483

Reference no: EM13952154

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