Annual interest rate-what is the net present value

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Your company is considering a new project -- buying a new truck to make some new deliveries.

-The deliveries will be worth $80,000 each year, for 8 years.

-The truck will cost $150,000. It will be kept for 8 years, at which time it can be sold for $30,000.

-A new driver will be paid $50,000 each year to operate the truck.

-The truck will need a one-time overhaul during its fourth year of operation, costing $25,000.

-Fuel and maintenance for the truck are expected to be $10,000 each year, for the 8 years.

*Using an annual interest rate of 7%, what is the Net Present Value (also called Net Present Worth) of this project?*

Reference no: EM131083171

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