Register
your company is trying to decide between two alternatives,truck a is relatively cheap truck cost $100000 and has 6 years life during wich it will produce anannual cash flow of $150000.truck b is much more
100.0k views
4 votes
your company is trying to decide between two alternatives,truck a is relatively cheap truck cost $100000 and has 6 years life during wich it will produce anannual cash flow of $150000.truck b is much more expensive it cost $250000and has only a 3 year life after wich it has to be replaced.however truck b is much more efficent than truck A.and during each of 3 years of its life it produce a cash flow of $300000 and company cash flow is 12%.calculate AEA and wich truck is better

User Sabius
by
4.0k points

1 Answer

6 votes

Answer:

the answer is a. because $150000 is already enough and if there are problems with the truck you can fix it with the money the truck makes so pick truck a.

User Mantzas
by
4.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.7m questions

6.1m answers

Other Questions

Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
edna kropp's gross income for a year included salary, $12,400; commission, $27,750; intrerest, $440. Her adjustment to income were payment to a retirement plan, $2,000, and a penalty for withdrawing savings
Your assessment tool contains rich data about child progress in language and literacy but no details to explain the differences between children. You decide to: A. Replace the tool with another B. Analyze
You want to endow a scholarship that will pay $ 7 comma 000$7,000 per year​ forever, starting one year from now. if the​ school's endowment discount rate is 6 %6%​, what amount must you donate to endow
Link Copied!