Determine the present worth of purchase

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Reference no: EM131920826

A truck is to be purchased for a commercial enterprise for a capital cost of $35,000. The truck is to be depreciated using MACRS depreciation and is sold during the 5t year for $24.000. If the truck brings in an increase of annual revenues of $12,000, determine the present worth of this purchase after 5 years, assuming a MARR of 8% and an increm ental tax rate is 35%.

Reference no: EM131920826

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