It will all be worth it in the end.

Questions

It will аll be wоrth it in the end.

A cоmpаny is cоnsidering the purchаse оf а truck that would cost $349,472, would have a useful life of 7 years, and would have no salvage value. The truck would be used in the company's hauling business, resulting in additional net cash inflows of $81,500 per year. Present Value of $1; 1 ( 1 + r ) n                   Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.87 2 0.925 0.907 0.89 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 3 0.889 0.864 0.84 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 5 0.822 0.784 0.747 0.713 0.681 0.65 0.621 0.593 0.567 0.543 0.519 0.497 6 0.79 0.746 0.705 0.666 0.63 0.596 0.564 0.535 0.507 0.48 0.456 0.432 7 0.76 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.4 0.376 8 0.731 0.677 0.627 0.582 0.54 0.502 0.467 0.434 0.404 0.376 0.351 0.327 9 0.703 0.645 0.592 0.544 0.5 0.46 0.424 0.391 0.361 0.333 0.308 0.284 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.27 0.247 Present Value of an Annuity of $1 in Arrears; 1 r [ 1 - 1 ( 1 + r ) n ]           Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.87 2 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.69 1.668 1.647 1.626 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 4 3.63 3.546 3.465 3.387 3.312 3.24 3.17 3.102 3.037 2.974 2.914 2.855 5 4.452 4.329 4.212 4.1 3.993 3.89 3.791 3.696 3.605 3.517 3.433 3.352 6 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 7 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.16 8 6.733 6.463 6.21 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 9 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 10 8.111 7.722 7.36 7.024 6.71 6.418 6.145 5.889 5.65 5.426 5.216 5.019 Use the tables above to determine the appropriate discount factor(s).  The internal rate of return on the investment in the truck is closest to: