What is the annual cost or worth of this purchase

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Reference no: EM131356306

Kalgoorlie Konstruction is considering the purchase of a truck. Over its five-year life, it will provide net revenues of Si 5 000 per year, at an initial cost of $65 000 and a salvage value of $20 000. KK pays 35% in taxes and its after-tax MARR is 12%. What is the annual cost or worth of this purchase, given that KK uses a diminishing value rate to calculate depreciation?

Reference no: EM131356306

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