also please calculate the "Internal Rate of Return" LOWING INFORMATION FOR THE NEXT 5...
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also please calculate the "Internal Rate of Return"
LOWING INFORMATION FOR THE NEXT 5 QUESTIONS: ABC Company is considering the purchase of a new garbage truc cost $40.000 and have useful life of 5 years w more efficient than the old delivery truck and should increase the com operating income by $12,000. Straight-line depreciation ne by $12,000. Straight-line depreciation will be used. The income tax rate is o and ABC Company's hurdle rate is 10%. PRESENT VALUE TABLES ON THE EXAM'S LAST PAGE. ring the purchase of a new garbage truck ON 1/1/20. The truck will e useful life of 5 years with a salvage value of $0. The new truck is much k and should increase the company's annual cash 4. Payback is equal to A. 3.436 years B. 3.536 years C. 3.636 years D. 3.736 years 5. The Accounting Rate of Return (AROR) is equal to A. 10.5% B. 9.5% C. 8.5% D. 7.5% 6. The Net Present Value (NPV) is equal to A. $1,701 B. $1,801 C. $1.901 D. $2,001 7. The Profitability Index (PI) is equal to A. .94 B. 1.04 C. 1.14 D. 1.24
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