TG Industries is considering investing in a fleet of six delivery vehicles. The annual running costs are expected to total $90,000 per vehicle, including the driver's salary. The vehicles are expected to operate for a total of five years. At present TG industries uses a commercial carrier for its deliveries. The commercial carrier is expected to charge a total of $680,000 for each of the next five years to make the deliveries. What is the estimated net annual cash cost saving on delivery vehicle running cost if TG industries invests in the fleet of six vehicles?
A) $90,000.
B) $400,000.
C) $310,000.
D) $140,000.
Correct Answer:
Verified
Q43: Projects can have multiple internal rates of
Q44: If the Net Present Value of a
Q45: The following information relates to three
Q46: Wishlist recently purchased a new packaging machine
Q47: On what should the decision to invest
Q49: What discount rate should be used in
Q50: Which of these factors influences the returns
Q51: What is the main disadvantage of the
Q52: Which of the following does the Net
Q53: The Square Package Group is thinking of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents