Problem 16-16 Using Present Value Techniques to Evaluate Alternative Investment Opportunities
ADK Delivery is a small company that transports business packages
between San Francisco and Los Angeles. It operates a fleet of small vans
that move packages to and from a central depot within each city and
uses a common carrier to deliver the packages between the depots in the
two cities. ADK delivery recently acquired approximately $3 million of
cash capital from its owners, and its president, Frank Hobb, is trying
to identify the most profitable way to invest these funds.
AND SO ON
Check:
a. NPV of the vans investment: $75,608.57
b. NPV index of the trucks investment: 1.126
Click here for the solution: ADK Delivery is a small company that transports business packages between San Francisco and Los Angeles
