Examlex

Solved

Only Organics Has a Delivery Truck That Was Purchased for $42,000

question 20

Multiple Choice

Only Organics has a delivery truck that was purchased for $42,000 and has a salvage value of $5,000.It expects the truck to last 125,000 miles.During Year 1,the truck traveled 32,500 miles and during Year 2,the truck traveled 28,500 miles.What is the depreciation expense for Year 2 to the nearest dollar using the units-of-production method? (Round to three decimal places to get the unit rate. )


Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over a period of time.

Compound Interest

A method of interest calculation on a loan or deposit that involves both the initial principal and the cumulative interest from earlier periods.

Initial Investment

The initial amount of money invested in a project, property, or business to start operations.

Required Rate

The minimum return an investor expects to achieve when investing in a project or security.

Related Questions