Suppose Madagascar is willing to trade 40 rubies to Peru for each emerald that Per produces and sends to Madagascar. Which of the following combinations of emeralds and rubies could Peru then consume, assuming Pen specializes in emerald production?a. 3 emeralds and 220 rubies b. 2 emeralds and 240 rubies c. 4 emeralds and 200 rubies d. 5 emeralds and 140 rubies

Revenues in the order of 18.170,66 dollars per truck per year will break even financially the investment with a yield of 15%

for the 55 truck $999.386,66 per year

Explanation:

F0 cash disbursement 21,200

MACRS depdep tax shield (depreciation x tax rate)

7,065.96           1,766.49

9,423.40         2,355.85

3,139.72             784.93

1,570.92             392.73

annual cost of the truck:

20,000 x 0.45 x 5% increase per year

maintenance

first year 9000

second year: 9450

third year: 9922.5

fourth year: 10418.625

net (maintenance cost less tax shield):

net

7233.51

7094.15

9137.57

10025.895

Then, we bring this to present considering the discount rate:

time: 1   7,233.51     6,290.01

time: 2   7,094.15      7,094.15

time: 3   9,137.57      9,137.57

time: 4   10,025.90   10,025.90

             Total PV            32,547.63

We know the salvage value in todays dollar is 35% of the purchase price:

21,200 x 35% = 7,420

(the inflation is already considered in the MARR)

We knwo calculate the present worth:

-21,200 - 32,547.63 + 7,420 = -38.907,63‬

Know we solve for an annuity of four year to ge t the equivalent annual cost:

PV38,908

time4

rate0.15

C  $ 13,627.995

We have to consider taxes so:

13,628 / 0.75 = 18.170,66