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James purchased two trucks for her warehouse for a total of $57,000. This investment saved...

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Accounting

James purchased two trucks for her warehouse for a total of $57,000. This investment saved her $11,000 every year for 9 years. At the end of year 9, she sells both the trucks for a total of $15,000.

a. What is the Net Present Value (NPV) of the investment if the required rate of return is 7%?

b. Does the investment meet the required rate of return?

Yes

No

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