Carler Company is considering the purchase of an electric powered truck for moving materials in its
factory. The electric powered truck will cost $ 22,000.
The cost of capital for the truck is 12%. The useful life of the truck is 6 years. The net cash flows from the
electric truck will be $ 6,290 per year. The net income from the electric truck will be $ 2,400.
Using the attached template, compute the following
NPV
IRR
ROI
PB
The company requires and Internal Rate of Return greater than 15% and a Return on Investment greater
than 19%. The Payback Period must be less than 3 years and The Net Present Value of the project must
be a positive number.
Using Word, summarize your decision.
Submit the spreadsheet and your decision using Word.
