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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Walt Wallace Construction Enterprises is investigating the purchase of a new dump truck. Interest is 9%. The cash flows for two Likely models are as follows
Annual
FirstOperatingAnnualSalvage
ModelCostCost incomeValueLife
A$50,000$2000$9,000 $10,00010 yr
B$80,000$1000$12,000 $30,00010 yr
(a) Using present worth analysis, which truck should the firm buy, and why?
(b) Before the construction company can close the deal, the dealer sells out of Model B and cannot get any more. What should the firm do now and why?
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