Super Haulers Is a Hauling Company and Delivers Large and Heavy

Multiple Choice

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) - $744
B) $5,228
C) - $6,150
D) $3,583