Owner of a haulage business is planning to invest in a new, Ask an Expert

Economics

Owner of a haulage business is planning to invest in a new eighteen wheeler that costs $180,000, use it for 5 years and then sell it off for $90,000 dollars. At 7% interest rate, how much net revenue the investment has to at least produce each year to make the investment worthwhile. Assume that the net revenue is constant in all years. (Hint: need to find the annual net revenue that yeilds NPV=0)

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707281

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