Amazon, Inc. is planning to purchase a Hybrid Truck for $500,000. The annual cash savings for...

Amazon, Inc. is planning to purchase a Hybrid Truck for $500,000. The annual cash savings for the next 6 years is estimated to be $100,000 for the next 6 years. The salvage value of the truck at the end of the seventh year estimated to be $50,000.

Assume that the required rate of return is 8%.

Based on your calculations

Would you approve the purchase based on NPV?
What would be your decision about this investment if the internal rate of return was the sole factor determining your decision?
Determine the discounted payback period for this project!

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Expert Solution

ekkarill92 answered 10 months ago

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