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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 409 Weeks Ago, 1 Day Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
5.3Â Â Â Five years ago, Diamond Electronics, a division of De Beers, paid $3,150,000 for new diamond cut- ting tools. At that time, the company estimated an added revenue need of $500,000 to recover the in- vestment at 10% per year. If there is an estimated 8 more years of service with a salvage value of
$300,000, compare the revenue needed over the entire life with that estimated 5 years ago.
5.4Â Â Â Brent owns Beck Trucking. Seven years ago, he purchased a large-capacity dump truck for $115,000 to provide short-haul earth moving services. He sold it today for $45,000. Operating and mainte- nance costs averaged $9500 per year. A complete overhaul at the end of year 4 cost an extra $3200.
(a) Calculate the annual cost of the truck at 7% per year. (b) If Brent estimates that Beck  cleared at most $20,000 per year added revenue from using the truck, was the purchase economically advantageous?
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