O’Brien Salvage is considering the purchase of a new heavy duty truck

O’Brien Salvage is considering the purchase of a new heavy duty truck. This truck will be picking up scrap from large industrial manufactures thoughout the suburban chicago. This is a market that O’Brien until recently has been unable to enter. Use the following data and answer the questions that follow.Initial Investment … 118,000Annual Revenue…..60,000Annual Cash Expenses…..40,000Salvage Value………………25,000Useful Life………………10 yearsHurdle rate ……………….12%What is the net cash inflow annually?how much in annual depreciation expense?how much in annual net income?Calculate ROICalculate PaybackCalculate NPV and make a decision. what’s the most you would pay?Will IRR be more or less than the hurdle rate?

Order your essay today and save 20% with the discount code: GREEN

Don't use plagiarized sources. Get Your Custom Essay on
O’Brien Salvage is considering the purchase of a new heavy duty truck
Just from $13/Page
Order Essay

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GREEN