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Lana71 [14]
3 years ago
6

your company is trying to decide between two alternatives,truck a is relatively cheap truck cost $100000 and has 6 years life du

ring 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
Business
1 answer:
Masja [62]3 years ago
4 0

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.

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