How the F do you do this (1 Viewer)

[example15001]

Looking at an opportunity to make some money... the MARR (minimum acceptable rate of return) is 23%
Bobs' assessment estimates that, if he buys a truck for $141,000, he can sell it after 6 years for a salvage price of 10% of the original price... Also While using the truck he can earn $23,500 every year.
What is the Net present value? (NPV)

Tried to do it but failed =/

 

[whoisurdaddy]

-$61260.20?

Assuming no depreciable tax effects from the truck...

 

[example15001]

oh oh sorry... i mean marr of 21.4%
and the truck can earn $22300/year
Or alternatively can you show me or just tell me the working please?
Thankyou

 

[miaowsha]

oh oh sorry... i mean marr of 21.4%
and the truck can earn $22300/year
Or alternatively can you show me or just tell me the working please?
Thankyou

There are great websites to help you with this type of thing - one such is wolfram alpha, and if that fails - try ultimate calculators. Google and you shall find. Additionally, your textbook should be of relevance? I'm surprised the kid did the first attempt for you... If you're getting the answer wrong in an NPV calculation, it may be that you got your numbers wrong (not implausible, given that you changed the MARR again here!)