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Boise State University Operations And Supply Chain Management Assignment Help - Central Mass


Question - Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an
anual net cash flow of $50,000 per year for five years. The salvage value of the ambulance will be
$25,000. Assume the ambulance is sold at the end of year 5. calculate the NPV of the ambulance if
the required rate of return is 9%. ( round your answer to the nearest $1.)

A) $(10,731)
B) $10,731
C) $(5,517)
D) $5,517

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