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Q1.Ten years ago, Mercedes Company purchased a tow car for $285,000 to move disabled 18-wheelers. The...

Q1.Ten years ago, Mercedes Company purchased a tow car for $285,000 to move disabled 18-wheelers. The tow car anticipated a salvage value of $50,000 after 10 years. During this time the average annual revenue totaled $52,000.

(a) How much is the Capital recovery at 12% MARR?


$-34.752 per year
$-47.590 per year
$-52.260 per year
$-83.757 per year
________

Q2.The cost of running engine is $3 million per mile. If the life of such engine 10 years, the annual cost of 10 engines at an interest rate of 10% per year is closest to:

____________

Q3.All of the following are examples of cash outflows, except:
Income taxes
Operating cost of asset
Asset salvage value
First cost of asset

Homework Answers

Answer #1

3) :- c is right option

Salvage value because it is as a cash inflow

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