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11 months ago
A national trucking firm has narrowed down the possible choices for its next warehouse purchase to two alternatives. The Winnipeg warehouse costs $600,000, and would have an estimated resale value of $800,000 after seven years. The Regina warehouse has a $750,000 price, and would have an estimated resale value of $900,000 after seven years. The annual operating profit from the Winnipeg warehouse would be $50,000. Because of its lower provincial costs, the warehouse in Regina's annual profit would be $90,000. Which warehouse should the trucking firm purchase if its cost of capital is 6.5% and in current dollars, what is the economic advantage of selecting the preferred alternative?

▸ Regina would provide a greater value of $133,731

▸ Winnipeg would provide a greater value of $133,731

▸ Winnipeg would provide a greater value of $241,731

▸ Regina would provide a greater value of $213,731

▸ Regina would provide a greater value of $166,731
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Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
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shalashashalasha
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lpn27 Author
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11 months ago
Correct Slight Smile TY
mambah4
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Yesterday
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Smair87
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2 hours ago
Helped a lot
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