Sh2please help me. Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $28,000 per year. Nancy can buy aused truck for $9,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $23,000 peryear. At the end of 3 years, the used truck will have an estimated salvage value of $4,000. Nancy's MARR is 19%/year.a. What is this investment's internal rate of return?IRR-1.% Do all calculations to 5 decimal places and round final answer to the whole number. The tolerance is +/-b. What is the decision rule for judging the attractiveness of investments based on internal rate of return?IF IRR2 MARR, ACCEPT: OTHERWISE, REJECT.c. Should Nancy buy the truck? Yes

Internal rate of return (IRR) refers to the rate at which the Net present value (NPV) of a project…

Answered: Nancy's Notions pays a delivery firm to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 19P

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