OD: -$24,089
OC: $3,047
OB: -$3,047
OA: $24,089
Answer to the nearest $1: The ambulance is sold at the end of year 2. Calculate the NPV of the ambulance if the required rate of return is 9%. (Round your answer)
The cash flow is $100,000 per year for two years. The salvage value of the ambulance will be $25,000. Assume the Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an annual net cash flow.