Cpm construction plans to buy a truck for 150000 and, Ask an Expert

Management Studies

CPM Construction plans to buy a truck for $150,000 and expects $100,00/year as an income. The company plans to sell it fro $15,000 at the end of Year 5. The annual operating cost of the vehicle is $60,000. 1) What is the IRR of this investment? 2) If the company uses a MARR of 12%, is this an attractive investment? Explain the reasoning for your answer.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91889903

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