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Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You...


Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5
Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully depreciated vans, which you think you can sell for $3,900 aplece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $38,000 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $4600 each. If your cost of capital is 10 percent and your firm faces a 40 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) Year 2 5 6 FCF
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Answer #1

Formula Bar B с D F G H 0 1 2 3 4 5 6 4600 4600 4600 4600 7600 4600 12160 -7560 4600 7296 -3000 1200 3024 4377.6 222.4 88.96

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