Sawyer Trucking is considering investing in new trucks for their regional trucking business. The investment will require an outlay of $150,000 initially, and is expected to generate the following after-tax cash flows: Year 1, $60,000; Year 2, $80,000; Year 3, $30,000 (due to planned repairs); Year 4, $120,000; Year 5, $100,000 (including the disposal value). The company uses a discount rate of 8%.
What is the Net Present Value of the proposed investment? (Use the tables in Appendix A to determine the appropriate discount factor.)

Question

Sawyer Trucking is considering investing in new trucks for their regional trucking business. The investment will require an outlay of $150,000 initially, and is expected to generate the following after-tax cash flows: Year 1, $60,000; Year 2, $80,000; Year 3, $30,000 (due to planned repairs); Year 4, $120,000; Year 5, $100,000 (including the disposal value). The company uses a discount rate of 8%. 
What is the Net Present Value of the proposed investment? (Use the tables in Appendix A to determine the appropriate discount factor.)

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The Answer of Sawyer Trucking is considering investing in new trucks for their regional trucking business. The investment will require an outlay of $150,000 initially, and is expected to generate the following after-tax cash flows: Year 1, $60,000; Year 2, $80,000; Year 3, $30,000 (due to planned repairs); Year 4, $120,000; Year 5, $100,000 (including the disposal value). The company uses a discount rate of 8%. 
What is the Net Present Value of the proposed investment? (Use the tables in Appendix A to determine the appropriate discount factor.)

Sawyer Trucking Is Considering Investing in New Trucks for Their