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Bobby Choco is considering purchasing a used food truck for $14,500. The truck will decrease...

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Accounting

Bobby Choco is considering purchasing a used food truck for $14,500. The truck will decrease annual operating costs by $2,000. All operating costs are cash items. Assume the useful life of the truck is 8 years and that the required rate of return is 6%. What is the net present value of this investment and should Bobby invest in the truck? Select one: a. $12,420, yes b. $2,080, no c. -$2,080, no d. $2,080, yes

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