Nancys notions pays a delivery firm to distribute its


Question: Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $31,500 per year. Nancy can buy a used truck for $10,500 that will be adequate for the next 5 years. Operating and maintenance costs are estimated to be $21,000 per year. At the end of 5 years, the used truck will have an estimated salvage value of $4,600. Nancy's MARR is 19%/year. What is the present worth of this investment?

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Accounting Basics: Nancys notions pays a delivery firm to distribute its
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