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Author Question: Bend Manufacturers is considering investing in a new truck that will be used to deliver its ... (Read 3172 times)

erikka246

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on: Feb 5, 2023
Bend Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture. Ron Shop, Controller of Bend Manufacturers, is considering a truck which will cost $80,000 and which has a useful life of 5 years. The new truck will save $9,600 per year in operating costs which are realized at the end of each year. Ron believes if the new truck is purchased it could be sold for $64,500 at the end of its useful life. Bend's required rate of return is 10%. What is the new truck's net present value?


Type of Cash FlowPeriodsInterest RateFactor
PV of $1510%0.6209
FV of $1510%1.6105
PV ordinary annuity510%3.7908
FV ordinary annuity510%6.1051
PV annuity due510%4.1699

◦ ($8,049)
◦ ($80)
◦ $18,658
◦ ($3,559)
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by erikka246 on Feb 5, 2023

Sha

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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erikka246

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Reply 2 on: Feb 5, 2023
:D TYSM

jackie

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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