Net present value method for a service company a Determine the expected annual net cash flows from the delivery truck investment for YY
Annual Net Cash Flow
dollar. If required, use the minus sign to indicate a negative net present value.
Present value of annual net cash flows
$
Investment
Net present value
$
c Is the additional truck a good investment based on your analysis?
because the net present value is
increase of $ for each year thereafter. The annual operating costs for the truck are estimated to be $ per year.
Present Value of $ at Compound Interest
a Determine the expected annual net cash flows from the delivery truck investment for YY
Annual Net Cash Flow
dollar. If required, use the minus sign to indicate a negative net present value.
Present value of annual net cash flows
Investment
