The problem is attached in the file titled "Problem".. It consists of 2 parts, 1st part is calculations and the 2nd part is a short response.
The file titled "Tables" consists of two tables which have to be used, when needed, to help calculate part 1 of the problem. This is the only method that can be used with calculations, any other method may give rounding errors.
See the attached files.© BrainMass Inc. brainmass.com March 21, 2019, 10:59 pm ad1c9bdddf
See attached file for format and formulas.
A Payback period
Initial cost $109,000
Net annual cash flows $17,700
Payback period = Initial cost
Net annual cash flows
B Return on average investment
Annual net income $8,835
Initial cost of truck $109,000
Salvage value of truck $20,350
Average investment in truck $64,675
Return on average investment = Annual net income
Average investment in truck
C Net present ...
The solution calculates payback periods, returns on average investments and NPV is examined.