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Accnt Hw P13-25 - Annual cash operating costs 0...

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P 13-25 Year(s) Amount 18% factor Present Value Buy new cars Initial investment Now -170000 1.000 -170000 Annual cash operating costs 1-3 -14500 2.174 -31523 Salvage value of the new cars 3 85000 0.61 51765 Present value -149758 Lease old cars
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Unformatted text preview: Annual cash operating costs 1-3-55000 2.174-119570 Cash deposit 3-10000 0.609-6090 Present value-125660 Net present value-24098 The company should lease old cars because it costs less....
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