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maksim [4K]
3 years ago
9

Managers at Eller Manufacturing are considering purchasing a new refrigerated delivery truck that Adaptive Practice Managerial,

8e will produce equal annual cash flows of $36,000 for 6 years. The trucks net present value is $12,780, its c is $144,000, its useful life is 6 years, and its annual depreciation expense (no salvage value) įs$24,000, what is the discount rate used by Eller to evaluate this project? Present Value of an Annuity of 1
Col1 Period 8% 9% 10% 11% 12% 15%
Col2 6 4.623 4.486 4.355 4.231 4.111 3.784
A. 11%
B: 12%
C) 1096
D) 9%
Business
1 answer:
juin [17]3 years ago
6 0

Answer:

C) 10%

Explanation:

($144,000 + $12,780)/$36,000 = 4.355

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