Bend Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture.Ron Shop,Controller of Bend Manufacturers,is considering a truck which will cost $80,000 and which has a useful life of 5 years.The new truck will save $9,600 per year in operating costs which are realized at the end of each year.Ron believes if the new truck is purchased it could be sold for $64,500 at the end of its useful life.Bend's required rate of return is 10%.What is the new truck's net present value?

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The Answer of Bend Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture.Ron Shop,Controller of Bend Manufacturers,is considering a truck which will cost $80,000 and which has a useful life of 5 years.The new truck will save $9,600 per year in operating costs which are realized at the end of each year.Ron believes if the new truck is purchased it could be sold for $64,500 at the end of its useful life.Bend's required rate of return is 10%.What is the new truck's net present value?

Bend Manufacturers Is Considering Investing in a New Truck That