(Solution) - Walt Wallace Construction Enterprises is investigating the purchase of a -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Walt Wallace Construction Enterprises is investigating the purchase of a new dump truck. Interest is 9%. The cash flows for two likely models are as follows:

(a) Using present worth analysis, which truck should the firm buy, and why?
(b) Before the construction company can close the deal, the dealer sells out of Model B and cannot get any more. What should the firm do now and why?