What is the annual worth of this investment

Assignment Help Business Economics

Reference no: EM13149618

An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company revenue by $10,000 annually, while the associated operating expenses are expected to be $3,000 per year. The truck's market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only two years, what is the annual worth of this investment? The MARR=18% per year.

Reference no: EM13149618

Questions Cloud

How much interest is in the sixty-eighth payment : How much interest is in the sixty-fourth payment? How much principal? D. How much interest is in the sixty-eighth payment? How much principal?

What is the volume in the beaker with the aqueous solution : What is the volume in the beaker with the aqueous solution NaCl of when equilibrium is attained, assuming ideal behavior? Part C: What is the volume in the beaker with the aqueous solution of a nonvolatile nonelectrolyte when equilibrium is attain..

Calculate the steady-state growth rates of capital : Calculate the steady-state growth rates of capital, output, saving and investment, and consumption - calculate the steady-state growth rates of capital per worker, output per worker, saving and investment per worker, and consumption per worker

Is this really inflation explain how : If the price of coffee increases, we get a positive rate of inflation, even if no other price rises. Is this really inflation? Explain.

What is the annual worth of this investment : The truck's market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only two years, what is the annual worth of this investment? The MARR=18% per year.

Plant and equipment for continuing nonpublic client : Which of the following best describes the auditors' approach to the audit of the ending balance of property, plant and equipment for a continuing nonpublic client?

What should be the sales price : Currently, the retailer sells 50 suits per week for $200 each. The retailer wants to sell the entire stock of 200 suits during the next year. What should be the sales price?

Compute the values of q : Calculate the values of q, w, delta U, and delta H for the reversible adiabatic expansion of 1 mole of a monatomic ideal gas from 5.00 m^3

Write down the total and marginal revenue functions : Write down the total and marginal revenue functions (d.) Suppose there is a 4 % increase in advertisement. What will be the effect on demand?

User Account

All Pages