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Author Question: Bend Manufacturers is considering investing in a new truck that will be used to deliver its ... (Read 310 times)

knemetz3

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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. The truck currently used by Bend cost the company $72,000 eight years ago.  Two years from now, the company anticipates spending $20,000 to overhaul the old truck, at which time the truck could be used for an additional 10 years. The old truck costs $8,000 per month in gas, insurance, and other costs to operate. Ron Shop, Controller of Bend Manufacturers, is considering the purchase of a new truck which will cost $100,000 and which has a useful life of 10 years. The new truck will only cost $4,800 per month to operate but will require an overhaul 8 years from now that is expected to cost $8,000. Ron believes the old truck can be sold for $16,000.  If the new truck is purchased, he estimates that the new truck could be sold for $28,000 at the end of its useful life. Which of the following is not a relevant cash flow in the decision to replace the truck?
◦ $3,200 per month in operating cost savings
◦ $72,000 purchase price of old truck
◦ $20,000 overhaul avoided on old truck
◦ $16,000 salvage value of old truck
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by knemetz3 on Feb 5, 2023

dude123

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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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knemetz3

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Reply 2 on: Feb 5, 2023
Excellent

diana chang

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

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