GB 519 RANK Extraordinary Life/gb519rank.com GB 519 RANK Extraordinary Life/gb519rank.com | Page 49

a year?( Note: PV factors for 10 % are as follows: year 1 = 0.909;

year 2 = 0.826; year 3 = 0.751; year 4 = 0.683; year 5 = 0.621; the

PV annuity factor for 10 %, 5 years = 3.791.) Student Answer: 2.5 years. 3.0 years. 3.3 years. 3.6 years. 4.0 years.

Question 14. Question: A truck, costing $ 25,000 and uninsured, was wrecked the very

first day it was used. It can either be disposed of for $ 5,000 cash

and be replaced with a similar truck costing $ 27,000, or rebuilt for

$ 20,000 and be brand new as far as operating characteristics and

looks are concerned. The net relevant cost of the replacing option

is: Student Answer:

a year?( Note: PV factors for 10 % are as follows: year 1 = 0.909;

year 2 = 0.826; year 3 = 0.751; year 4 = 0.683; year 5 = 0.621; the

PV annuity factor for 10 %, 5 years = 3.791.) Student Answer: 2.5 years. 3.0 years. 3.3 years. 3.6 years. 4.0 years.

Question 14. Question: A truck, costing $ 25,000 and uninsured, was wrecked the very

first day it was used. It can either be disposed of for $ 5,000 cash

and be replaced with a similar truck costing $ 27,000, or rebuilt for

$ 20,000 and be brand new as far as operating characteristics and

looks are concerned. The net relevant cost of the replacing option

is: Student Answer: