Super Haulers is a hauling company and delivers large and heavy materials to construction job sites. Super Haulers is considering purchasing a new dump truck that costs $200,000 and the managers of Super Haulers have estimated that the new dump truck will generate $50,000 a year in future operating profit for the next four years. At the end of four years, Super Haulers can sell the dump truck at
a salvage price of $26,000. If the discount rate is 6 percent, what is the net present value of the dump truck?
A) -$6,150
B) $3,583
C) $5,228
D) -$744
A) -$6,150
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