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Business, 15.10.2021 02:10 baileyrw

An investment in a hauler will cost $40,000 and have no salvage value at the end of 5 years. The hauler will generate a gross income of $12,000 per year, but its operating cost will be $2,000 during the first year, increasing by $500 per year until it reaches $5,000 in the fifth year. The straight line depreciation method is used. The tax rate is 34% and the after-tax MARR is 10%. Determine the net present value of the hauler purchase for a five year planning horizon.

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An investment in a hauler will cost $40,000 and have no salvage value at the end of 5 years. The hau...
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