The trucks market value is expected to decrease by 2500, Ask an Expert

Economics

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.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9439761

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